Liquid Staking - myPLUME
Last updated
Last updated
myPLUME is the premier liquid staking product for the PLUME token, based on Frax's sfrETH. It uses a two-token system, myPLUME (Mystic PLUME) and mystPLUME (Mystic Staked PLUME) to give users the ability to tap into DeFi while also earning staking rewards.
When holding PLUME, users can a) deposit it to mint myPLUME and b) stake myPLUME to get the yield-bearing mystPLUME (i.e. staking your PLUME). This allows you to earn staking rewards without running your own validator while also using your myPLUME and mystPLUME tokens in DeFi.
Breaking down the two tokens in more detail:
Acts as a non-yield-bearing stablecoin loosely pegged to PLUME, and can be thought of as similar to holding PLUME. The myPLUME peg is defined as 1% of the exchange rate on each side - 1.01 to .9900.
The version of myPLUME that accrues auto-compounding staking yield. MyPLUME = PLUME and mystPLUME = PLUME + staking rewards. In practice, when you stake PLUME/myPLUME to get mystPLUME, your tokens are given to Mystic's choice validator. The respective staking rewards are then kept in a ERC-4626 vault, the "Mystic Staked PLUME Vault". The rewards are minted according to yield earned from staking and kept in this vault in the form of myPLUME, which users can at any point redeem.
Do note, all the profit generated from staking is distributed to mystPLUME holders and not to myPLUME holders. This means that, by holding myPLUME, you are forfeiting staking yield for added liquidity. This also means that, since some users will be holding myPLUME, mystPLUME stakers will earn not only the rewards corresponding to their own staked tokens, but also the share of the rewards that would otherwise go to myPLUME holders.
To ensure fairness, reward distribution is done over time cycles. This means that rewards in the mystPLUME vault increase linearly over time during each cycle, as well as that each user is rewarded according to the portion of the time cycle that they have spent staking PLUME.
Most PLUME deposited on Mystic is staked on the Plume blockchain. However, a small amount is kept as a safety fund / buffer instead of being staked. This both facilitates faster withdrawals and overcollateralizes myPLUME to cover slashing events/unforeseen penalties.
MystPLUME can always be redeemed 1 + accrued rewards for myPLUME, which can in turn be redeemed 1:1 for PLUME. When you withdraw mystPLUME, you get back both your principal and your staking rewards in the form of myPLUME, the latter of which are withdrawn from the mystPLUME vault. MystPLUME to myPLUME withdrawals can be made instantly.
MyPLUME can be withdrawn directly to PLUME in one of three ways:
Via Mystic's PLUME Buffer - if what you're withdrawing is within buffer capacity, you can always withdraw your myPLUME for PLUME instantly.
Via validator unstaking - you first unstake from the validator with Mystic and, after a time buffer, you can then withdraw your holdings. This time buffer safeguards you against frontrunning, MEV, and other arbitrage externalities.
myPLUME fees are as follows:
Minting = 0%
Yield Fee = 10%
Validator Unstaking Withdrawal = 0.03%
Instant Withdrawal (through Buffer) = 0.15%
Withdrawals from mystPLUME Rewards Vault = 0%
Via AMMs - swap your myPLUME for PLUME directly on ecosystem DEXes such as and .
