Beefy-escrowed SonicPrice

(BES)

Beefy-escrowed Sonic (beS) is a liquid-staking token (LST) developed for the Sonic network. It allows users to earn native staking rewards while maintaining the liquidity of their assets. By using beS, participants can keep their assets transferable and usable across the ecosystem instead of having them locked in a traditional staking contract. It serves as a liquid representation of staked Sonic, enabling users to accrue rewards while retaining the flexibility to trade or utilize their tokens.

The beS token is not strictly pegged to Sonic; rather, it is a yield-bearing token. Its value is designed to increase relative to Sonic over time as staking rewards are earned and compounded back into the protocol. While it aims to track the underlying asset's value closely, market fluctuations on decentralized trading platforms can cause temporary price differences. The primary mechanism for growth is the automated harvesting and reinvestment of staking yield.

Directly withdrawing Sonic from the beS protocol requires a 14-day unbonding period. This duration is a mandatory requirement of the Sonic network's native staking mechanics. When a user initiates a withdrawal, their request enters a queue, and the assets become available for claim after the 14 days have passed. For users requiring immediate liquidity, an alternative is to swap beS for other assets on decentralized exchanges, though this method may involve slippage.

Staking rewards are automatically collected and compounded by the protocol's automated system, generally every 24 hours. The protocol charges two types of fees, which are deducted only from the earned staking yield rather than the principal: a 9.5% Performance Fee for administration and a 10% Liquidity Fee. The Liquidity Fee is specifically used to fund incentives that ensure the token maintains deep liquidity across the ecosystem.

The protocol initially stakes assets with its own dedicated validator. However, to maintain network decentralization and handle scalability, the system is designed to automatically delegate Sonic to other approved validators if the primary validator reaches its maximum capacity. This ensures that all user deposits are continuously earning rewards and that the protocol can scale effectively without being limited by a single validator's cap.

Beyond earning staking yield, beS provides several utility benefits within the ecosystem. Locking or staking the token can grant users governance voting power, allowing them to influence protocol decisions and the distribution of rewards. Additionally, participants may earn points or multipliers that increase their eligibility for various protocol incentives and airdrops. This makes the token a central component for users looking to maximize their engagement with the Sonic network.