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Monad LSD

PhxVerse Monad LSD (Liquid Staking Derivative) is an efficient staking solution designed specifically for the Monad ecosystem. It seamlessly combines staking rewards with asset liquidity without compromising security or decentralization. This allows users to earn stable PoS returns while maintaining the freedom to use their funds, maximizing capital efficiency.

In short: Stake Mon on Monad while keeping your assets liquid and enjoying continuous compound growth.

Why Choose Monad LSD?​

In traditional Monad PoS staking, users often have to compromise between rewards, liquidity, and efficiency:

  • Rewards must be manually claimed, making it difficult to achieve compounding.
  • Staked assets are locked for long periods, leading to missed DeFi opportunities.
  • Redemption has a waiting period, resulting in low capital turnover efficiency.

PhxVerse Monad LSD's objective is clear:

Stop letting staked assets "sleep" and start creating continuous value for users.

By introducing the liquid staking token cMon, along with auto-compounding and fast withdrawal mechanisms, Monad LSD completely reshapes the staking experience on the Monad network.

Core Mechanism Overview​

When users deposit Mon into the PhxVerse Monad LSD protocol:

  1. The protocol immediately mints an equivalent amount of cMon for the user.
  2. All Mon is pooled and delegated by the protocol to high-quality validators for PoS consensus.
  3. Staking rewards are automatically re-staked, ensuring continuous compounding.
  4. Users can use cMon at any time for trading, DeFi combinations, or to initiate redemption.

In this model, users no longer have to choose between "yield" and "liquidity"—they have both.

cMon: Truly Usable Staked Assets​

cMon is the core asset of PhxVerse Monad LSD, representing the user's staked equity in the protocol. Its design fully considers liquidity and composability:

  • Instantly Available: Receive cMon immediately after staking, which can be freely transferred, traded, or used in DeFi.
  • Continuous Appreciation: As staking rewards accumulate, the exchange value of cMon against Mon increases.
  • Exit Anytime: cMon can be used directly to redeem Mon or quickly liquidated on a DEX.

Future cMon will be deeply integrated into the Monad DeFi ecosystem as a major underlying interest-bearing asset.

The Secret to Fast Withdrawals: Liquidity Pool​

To significantly optimize user experience, PhxVerse Monad LSD introduces a Withdrawal Liquidity Pool specifically designed to accelerate the withdrawal process.

Sources of funds for the liquidity pool include:

  • The 5% protocol fee taken from staking rewards.
  • Initial liquidity injected by the team.
  • New staking funds and compounded rewards that have not yet entered the PoS activation cycle.

In the Monad PoS mechanism, every 50,000 blocks constitute an Epoch (approx. 5.5 hours), and all staking/unstaking operations only take effect at the end of an Epoch. Monad LSD leverages this mechanism:

  • Mon newly entering the protocol is prioritized for enhancing liquidity within the Epoch.
  • After the Epoch ends, funds are collectively moved into PoS for consensus and reward distribution.

This design brings a near real-time withdrawal experience to users without affecting long-term yields.

Fee Design: User-Friendly​

PhxVerse Monad LSD charges only 5% of the actual staking rewards generated as a protocol fee:

  • Does not affect the user's principal.
  • Significantly lower than the industry-standard 10%.
  • All fees flow back into the liquidity pool to improve overall withdrawal efficiency.

This is a fee model focused on user experience and long-term ecosystem development.

Core Advantages Summary​

🚀 Maximized Liquidity​

Stake to receive cMon; assets are no longer locked. Once listed on major DEXs (like Uniswap or PancakeSwap), users can trade and combine yield strategies at any time.

📈 Further Enhanced Yields​

The auto-compounding mechanism allows rewards to "grow themselves." Compared to traditional staking, Monad LSD is expected to provide an additional 1%–2% APY.

💸 Lower Costs​

With only a 5% fee on rewards, more returns actually go back to the user.

⚡ Faster Withdrawals​

  • Small withdrawals: Almost instant.
  • Large withdrawals: Follow the native PoS redemption period (5.5–11 hours).
  • DEX Exit: Sell cMon directly for instant liquidity (impermanent loss may apply).

Compared to both traditional staking and other LSD protocols, PhxVerse Monad LSD takes efficiency and experience a step further.

FastLane's Atom Pool rapid redemption mode incurs additional fees, whereas PhxVerse Monad LSD waives such costs entirely. Furthermore, FastLane's standard redemption process is less efficient than that of Monad LSD, often requiring more than 24 hours. In contrast, Monad LSD redemptions are processed within the Monad PoS network's epoch cycle (typically 5.5–11 hours).

🛡 Mature and Secure​

The core design of Monad LSD has been long-proven in the Ethereum and multiple public chain ecosystems (e.g., Conflux, Conflux eSpace). PhxVerse introduces multiple security mechanisms at the architectural and operational levels, dedicated to providing stable and reliable staking infrastructure.

Additional Rewards: Beyond Base Yields​

Besides base staking returns, PhxVerse will periodically launch extra incentive programs:

  • Extra rewards for staking cMon.
  • Provide cMon-related LP to participate in yield farming.
  • Joint incentives with ecosystem partners.

In Monad LSD, staking is not just the beginning, but an entry point into the entire Monad DeFi ecosystem.