Features Overview

sTAO is a value-accruing LST, which means that, over time, the value of sTAO denominated in TAO will increase as the TAO staking rewards accumulate. This makes it compatible with many DeFi protocols, similar to other popular decentralized staking tokens.

sTAO can only be created through the Taofu minting process of exchanging TAO for sTAO.

The minting of sTAO is done by allowing holders of TAO to swap TAO for sTAO through the Taofu Request For Quote (RFQ) process, which entails an institutional grade merchant portal where whitelisted entities can register and mint sTAO.

This architecture manages the process through which TAO is deposited and staked, resulting in a corresponding minting action on the EVM blockchains as an Omnichain fungible token using the LayerZero infrastructure.

Alternatively, individuals and entities alike can purchase and sell sTAO on the open markets without needing to be whitelisted.

As the validators participating in the Taofu ecosystem generate yield, the value of sTAO in circulation increases as a reflection of the total value in the Taofu custody wallet.

As detailed below, aspects of the Taofu protocol are managed by separate entities, which helps to mitigate risks to both the protocol and users. Furthermore, there are three separate committees to oversee the minting process as a form of checks and balances.