stGRAM explained

stGRAM is now available only for holding and unstaking, you cannot mint it. The actual Bemo LST is bmGRAM. Follow this link for more information: bmTON section.

The smart contract determines the price of stGRAM to GRAM after each validation round. It is calculated by adding the total GRAMs deposited and staking rewards, subtracting fees, and then dividing this result by the minted stGRAMs. This formula eliminates the need for oracles since the underlying asset and staking rewards are denominated in GRAMs.

Every stGRAM holder can unstake their tokens at any time, following a cooldown period of 36 to 72 hours. They will receive their GRAMs and the accumulated rewards.

stGRAM is fully backed by the bemo stake pool, ensuring there is no possibility of a fundamental depeg within the app.

The smart contract defines the Fundamental price, representing the intrinsic value of stGRAM. The market price is driven by supply and demand dynamics on exchanges where stGRAM is traded. Any Market price depeg creates an arbitrage opportunity as the unstaking option is always available on the bemo application.

Example

You deposit 100 GRAMs into bemo finance, receiving 100 stGRAMs in return. The exchange rate is 1 stGRAM to 1 GRAM at the time of this deposit. GRAM Pool now consists of 100 GRAMs.

Over time, bemo accumulates a staking reward of 5%. This reward is added to the GRAM pool, increasing its total value by 5 GRAMs. As a result, the GRAM pool now contains 105 GRAMs.

However, despite the growth of the GRAM pool, your stGRAM balance remains unchanged at 100 stGRAMs. What does change is the value of each stGRAM. The value of 1 stGRAM increases by 5% to 1.05 GRAMs.