Liquid

Liquid (https://liquid.rain.fi/) is a protocol that allows users to stake their tokens and receive a liquid staking token (stToken) that can be used as collateral to borrow on Rain.fi.

This lets users keep utility and access liquidity while their tokens remain staked.

🔁 How It Works

• Users stake tokens (e.g. JUP, COLLAT) into Liquid.

• In return, they receive an stToken (non-transferable, non-convertible).

• stTokens can be used as collateral for borrowing, but cannot be transferred or sold.

🧷 Unstaking

• The unstaking period depends on the underlying staking program:

  • stJUP → 34 days

  • stCOLLAT → 15 days

• During the unstaking period (e.g. stJUP), users lose voting power.

• Once unstaking completes, the user receives back the base token.

  • 1 stToken = 1 base token, always.

⚠️ Liquidation Behavior

If a user’s stToken position is liquidated:

• The stToken is automatically sent to the lender’s wallet.

• It remains considered staked (with full voting power restored for stJUP).

• The lender can then choose to unstake if they wish.

🔒 Restrictions

• Users cannot create pools using stTokens.

• stTokens are non-transferable and cannot be swapped into any other token.

🎁 Rewards Distribution

• Users must claim rewards directly on Liquid after each distribution.

• Rewards are distributed in the form of stTokens, which directly increase the staked balance of each user.