sFLR and its exchange rate are some of the most important and unique aspects of Sceptre and that uniqueness naturally leads to a lot of frequent questions about them. In fact, these are probably the most common questions our team gets.
To make the topic of sFLR’s exchange rate as clear as possible, in this article we are going to cover:
what the sFLR vs FLR exchange rate is and how it works.
what happens when you provide sFLR to other protocols in the Flare Network.Â
how you can track the value of your sFLR vs FLR.
What is the sFLR vs FLR exchange rate and how does it work?
The sFLR vs FLR exchange rate is the value at which we measure how much one token (sFLR) is worth in relation to the other (FLR). Unlike traditional exchange rates, the value of sFLR always goes up in relation to FLR. This may sound odd, but it’s actually quite straightforward since there’s no fluctuation between the value of these tokens.
When you stake FLR or wFLR on Sceptre, you receive Sceptre Staked Flare (sFLR) in your wallet, a Liquid Staking Token (LST) that you can use in other protocols in the Flare network to earn additional yield.
The sFLR that’s added to your wallet is minted in proportion to the amount of FLR or wFLR you stake on Sceptre. Due to this proportion, staking on Sceptre doesn’t have any impact on the FLR vs sFLR exchange rate. The opposite is also true: when you unstake from Sceptre, the sFLR that you return is burned in the same proportion as the wFLR that you’ll receive in your wallet, so the exchange rate remains unchanged.
When you swap a token for sFLR on a DEX, like Blazeswap, no new sFLR is minted - that comes from that exchange’s reserves so the value of sFLR vs FLR remains the same.
In other words, when proportionality is maintained, so is the value of sFLR vs FLR. However, when you stake on Sceptre, we claim the staking rewards and FlareDrops for you and add them to the pool. Since this adds new FLR tokens to the pool but isn’t part of a staking process, no sFLR tokens are minted. For this reason, the price of sFLR must be increased to make up for the difference and, in turn, the exchange rate of sFLR versus FLR goes up.
Because the exchange rate goes up as rewards and FlareDrops are added to the pool, when users unstake from Sceptre, they will receive more wFLR than what they originally deposited.
What happens when you provide sFLR to other protocols?
When you take the sFLR tokens you received for staking on Sceptre and provide them to one of the many protocols on the Flare Network, such as Kinetic, Enosys or Sparkdex, among others, the FLR or wFLR you staked on Sceptre keeps accruing rewards, as well as receiving FlareDrops. As we explained above, rewards and flaredrops make the exchange rate go up so the value of your sFLR keeps going up against FLR, even if you’re using it in a protocol.
The FLR or wFLR tokens you deposited on Sceptre are not linked to your wallet - you simply received an amount of sFLR that indicates that you are entitled to receive back wFLR in the proportion of those tokens. So, you can use that sFLR on any other protocol and, when you feel like unstaking, you can return it to Sceptre and exchange it for wFLR.
How can you track the value of your sFLR vs FLR?
The sFLR vs FLR exchange rate is visible on the Stake and Unstake tabs of the Sceptre app, right below the value input field. If you want to calculate how much FLR your sFLR is worth at any given time, go to the Unstake tab and enter the amount of sFLR you own, be it in your wallet or deposit somewhere.
If you’d like to track the exchange rate evolution over time, go to the last tab in the app, sRewards.
In this tab, you will find the evolution of the sFLR vs FLR exchange rate since Sceptre launched in June 2024. The unusual jump in August happened during the change to a staking and no staking period on the platform and the end of the distribution of FlareDrops over the course of 30 days. This means that you can expect the exchange rate to have similar steep jumps whenever a new FlareDrop takes place and the staking period opens. Our team is working on adding lines for rewards and FlareDrops to this graph as well so you can track how their distribution went and what impact it had on the exchange rate.
We hope this article helped clear any doubts you had about sFLR and its exchange rate vs FLR. If you still have questions, feel free to get in touch with our team on Telegram, Discord or X.
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