Sceptre Staked FLRPrice

(SFLR)

sFLR operates as a reward-bearing token, differing from systems that distribute rewards as newly minted tokens. The underlying protocol continually accrues rewards and FlareDrops from its staking activities on the Flare Network. These earnings are added to the total FLR pool managed by Sceptre, but no new sFLR tokens are created. This mechanism means that the redemption value of each existing sFLR unit grows. Consequently, holding sFLR allows each token to represent a progressively larger amount of FLR, reflecting the accumulated earnings within the protocol. Users "realize" these compounded rewards by redeeming their sFLR for a greater quantity of FLR than initially deposited.

No, Sceptre Staked FLR (sFLR) is not designed to be pegged 1:1 with native FLR tokens; it is not a stable asset. While the initial conversion at launch might have been 1 sFLR for 1 FLR, this ratio changes over time. As the Sceptre protocol automatically accumulates staking rewards and FlareDrops, the total amount of FLR managed by the system increases relative to the fixed supply of sFLR. This means that each sFLR token becomes redeemable for a progressively higher amount of FLR. To determine the current redemption value, users should always refer to the official Sceptre platform dashboard, which displays the live exchange rate between sFLR and FLR.

Sceptre Staked FLR (sFLR) employs an automatic compounding mechanism for rewards, meaning earnings are not sent as separate transactions to your wallet. Instead, all rewards generated from P-chain staking, FTSO delegation, and FlareDrops are reinvested into the underlying sFLR pool. This increases the overall value represented by each sFLR token you hold. Therefore, your rewards are intrinsically compounded into the growing exchange rate of sFLR against FLR. You will observe the accumulation of these rewards when you eventually convert your sFLR back into FLR, receiving a larger quantity of FLR than your initial deposit.

Yes, a significant benefit of Sceptre Staked FLR (sFLR) is its comprehensive handling of FlareDrop distributions. The protocol is designed to automatically claim the monthly FlareDrops associated with the underlying FLR it manages. Once claimed, these FlareDrops are then immediately added back into the staking pool. This process simplifies participation for users, removing the necessity for manual monthly claims. By integrating FlareDrops directly into the protocol's earnings, Sceptre ensures these distributions contribute to the increasing redemption value of your sFLR, compounding your overall yield without any intervention required from the user.

When you choose to unstake your Sceptre Staked FLR (sFLR) through the official protocol, there is a mandatory cooldown period. This duration is set at 14.5 days. This waiting period is directly aligned with the underlying lock-up requirements of the Flare Network's native staking mechanism, reflecting the time needed for the staked FLR to become available from the network. It's crucial for users to factor in this cooldown when planning to access their FLR, as their funds will not be immediately available after initiating the unstaking process.

Yes, it is possible to achieve instant liquidity for your Sceptre Staked FLR (sFLR), but not directly through the Sceptre protocol's unstaking mechanism. Instead, you can swap your sFLR for FLR or wrapped FLR (wFLR) on various decentralized exchanges. These third-party trading platforms allow users to trade sFLR on a live market. However, opting for instant swaps on these platforms may involve a small reduction in value. This can occur due to factors like trading fees, slippage, or the market price on the exchange being slightly below the protocol's official redemption rate.