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How To Liquid Stake with Sceptre

Updated: Jul 5


How to Liquid Stake with Sceptre

Article updated on 06/19/2024


Proof of Stake (PoS) networks like Flare rely on staking for security, but traditional staking often restricts access to your assets during the lockup period, limiting your liquidity.


The solution to this is liquid staking, which lets you stake your assets and receive a liquid staked token (LST) at the relevant exchange rate in return. This LST acts like a substitute for your staked assets and can be freely traded on Decentralised Exchanges (DEXs) or used in other DeFi protocols, unlocking the value of your staked assets and allowing you to earn additional income without sacrificing liquidity. To learn the difference between a Centralised and a Decentralised Exchange, we encourage you to read this article.

How to Liquid Stake with Sceptre - staking and unstaking on Sceptre

How does Sceptre Liquid Staking work and how do I  receive my rewards?

While you stake with Sceptre, Sceptre claims the Staking/Delegation rewards and FlareDrops for you. These rewards influence the exchange rate of sFLR (Sceptre’s Liquid Staked FLR) versus FLR.


As you can see in the graphic below, the price of sFLR vs FLR is continually increasing, which means your rewards are captured in the sFLR price.


How to Liquid Stake with Sceptre - Rewards

When you wish to use your sFLR in another protocol, like a lending platform, you don’t have to unstake to “get your rewards”; they are added continuously so the sFLR in the lending platform will be worth more and more versus FLR.


It's important to note that the price difference between sFLR and FLR can be influenced by the source of the price feed: if the price comes from Sceptre, it will be constantly going up vs FLR, but any price feed based on a DEX pool is outside our control and might be less stable until arbitrage kicks in. Overall, Sceptre strives to provide accurate price information, but external factors can influence the displayed value.


How do FlareDrops come into the picture?

To ensure a stable and reliable valuation for sFLR, we will not include the full value of upcoming FlareDrops when they occur because that would create a staking and selling behaviour that is negative for the community as a whole. Instead, 1/30th of the total FlareDop value will be added daily during the 30 days following each distribution.


Does this mean you are getting your FlareDrops later? Yes and No. When you stake, you exchange your wFLR at a certain exchange rate and you start getting 1/30th of the previous FlareDrop every day. Because you also get rewards during the 2-week unstake cooldown period, you keep on earning 1/30th of the drops until the very last day. That means you “buy in” to the previous FlareDrop while you sell out on the upcoming FlareDrop. We do stake the FlareDrops right away to maximise returns for the community.


What about Staking and Delegation Rewards?


Staking and Delegation rewards are added daily to the sFLR pool over a period of 14 days, thus increasing the value of sFLR vs FLR. This 14-day period is directly related to the frequency with which these rewards can be claimed and are distributed this way to protect the community from exploitation and double dipping. Once Flare increases the frequency of claiming for stake rewards, the distribution frequency will follow accordingly.


How do I stake Flare on Sceptre and regain liquidity while still getting FlareDrop rewards?


This process is fairly simple and you just have to follow the 3 steps below:


Step 1: Acquire FLR/wFLR

To get started, first you will need FLR or wFLR. If you have none at the moment, you can buy some at a Central Exchange (CEX) or swap for it at a Decentralised Exchange (DEX). If you bought your FLR at a CEX, you will need to move your FLR to your DeFi wallet (like Metamask) on the Flare network (you can follow this guide to learn how to add the Flare Network to Metamask).


Step 2: Stake Your FLR

  1. Go to flare.sceptre.fi and open the app. Connect your wallet to the Sceptre App.

  2. Select the type of FLR you have (FLR or wFLR) and 

  3. choose the amount you wish to stake before you 

  4. click "Stake". Follow the steps in your wallet, and at the end, you will receive your sFLR at the current exchange rate.


How to Liquid Stake with Sceptre - adding sFLR to your wallet
You can add the sFLR token to your browser wallet from the dropdown menu “Add to Wallet”

You can see the amount of sFLR in your wallet and what that means in wFLR by opening the Wallet Modal.


How to Liquid Stake with Sceptre - checking Flare in your wallet

Step 3: Use your newly minted sFLR

Staking isn't a one-size-fits-all solution. Sceptre offers secure staking with liquidity, but for those seeking more, sFLR unlocks exciting DeFi opportunities for earning additional rewards. At the time of writing, one such opportunity is our partner Kinetic.market – a lending market on Flare with an sFLR market (release date unannounced). You can also explore earning additional yield by participating in liquidity pools on DEXs like Blazeswap.xyz or Enosys.global and Farming at Enosys.global.You can read more about commonly used strategies in Liquid Staking in this article on Medium.


As the Flare Network grows and other opportunities are created, you will agree that Liquidity is King 👑


How to Liquid Stake with Sceptre - liquidity with Sceptre on Flare


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