sSynth Staking & Locking

The sSynth token plays a vital role in the Solidus Synth ecosystem, offering holders multiple ways to earn rewards through staking and locking mechanisms. These options allow participants to benefit from protocol fee distributions while contributing to the stability of the synthetic asset ecosystem.

Staking & Locking Overview

• Stake sSynth – Earn a share of protocol fees with no lockup.

• Lock sSynth – Commit tokens for 4 weeks to earn higher rewards from protocol fees and penalties collected from early reward withdrawals.

How Staking Works

• sSynth stakers receive platform fees generated by Synth minting and redemption transactions.

• No lockup period – Users can unstake at any time and claim rewards.

• Rewards distributed in Sonic (S) tokens

✅ Best for: Users who want flexibility and passive rewards without locking up funds.

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How Locking Works

• Locking sSynth increases rewards by granting access to:

  • Platform Fees – Earn a higher portion of real yield fees compared to standard staking.

  • Rehypothecation rewards - Earn additional tokens from other protocols such as farmed Dex tokens, stablecoins, and more.

  • Early Withdrawal Penalty Fees – A share of the 50% penalty fees collected from users who withdraw their liquidity mining rewards early.

• 4-week lockup period – During this time, tokens cannot be withdrawn.

✅ Best for: Users who want higher returns and don’t need immediate access to their tokens.

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Epoch System & Reward Distribution

Solidus Synth operates on a 7-day epoch system, where rewards and distributions are calculated and updated on a weekly cycle.

• Rewards accrue throughout the epoch and are available for claim at the end of each period.

• Users can view their staking and locking status on the Staking Dashboard.

📌 Longer-term participation results in greater rewards, making Synth’s staking and locking system ideal for users seeking sustainable yield opportunities.