stIPRWA

Description

stIPRWA are ERC-20 compliant tokens received from staking IP RWA tokens. These tokens earn royalties from the IP while staked.

Function

stIPRWA represents IP RWA tokens committed to the staking protocol. In the case of $APL they earn royalties.

Technical Implementation

stIPRWA is minted when a user stakes their IP RWA tokens. They are free to stake or unstake at any time. However, unstaking cannot happen in the same block as the staking occurs.

Mechanics

In the case of $APL, as offchain royalties accrue from the underlying assets, these will be used to buyback $APL. This will cause the $stAPL to $APL ratio to increase over time as royalties accumulate, similar to liquid staking tokens. When the user unstakes, they will receive back their original $APL tokens, along with the extra earned by the royalties.

Benefits

In the case of $APL, holders automatically accrue their share of royalty distributions while holding these staked tokens.