# sXRD

### Overview

sXRD (Staked XRD) is a DeFi asset on the Radix network, backed by a pool of Liquid Staking Units (LSUs). It provides a mechanism for passive staking rewards and serves as a new source of DeFi collateral while contributing to network security.

### Key Features

1. **LSU Aggregation**: sXRD aggregates multiple LSUs into a unified token.
2. **Passive Rewards**: Holders earn staking rewards without manual staking or running a validator.
3. **Built-in Uptrend**: The Net Asset Value (NAV) of the underlying LSUs provides a natural uptrend as validators earn rewards.
4. **DeFi Utility**: Can be used as collateral in the Radix DeFi ecosystem.
5. **Trustless Rebalancing:** Implements a mechanism to maintain balanced validator representation and protect against stake substitution attacks.

### Usage

* User adds LSUs to the pool.
* Newly minted sXRD tokens represent the user's share of overall liquidity.
* Validator rewards from transaction processing and ledger finalization accrue to sXRD.

### Pool Rebalancing Mechanism

To keep a balanced representation of validators, the sXRD pool implements a modified sigmoid fee curve with the following characteristics:

1. Fees start at 0% for adding liquidity and 0.05% for removing liquidity.
2. Fees increase up to 20% as a validator's stake diverges from the average.

### Integration Guidelines

1. Ensure your application can interact with the sXRD pool contract.
2. Implement proper handling of sXRD tokens, including minting, burning, and transfer operations.
3. Consider the rebalancing mechanism when designing liquidity addition or removal functions.
4. If building on top of sXRD, factor in the built-in uptrend and passive reward accrual in your economic models.


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