FAQs for Functional - WAVE Token & Staking on W Swap

WAVE is the native incentive and reward token of W Swap; the decentralized exchange built on W Chain. It is designed to boost liquidity, reward participants, and eventually enable governance of the W Chain DeFi ecosystem

You can earn WAVE tokens in two primary ways:

• Liquidity Mining: Provide liquidity to designated pools on W Swap (e.g., WCO/USDT, WAVE/WCO) to receive LP tokens and earn WAVE through emissions.
• Staking: Stake LP tokens or WAVE tokens directly in staking pools to receive additional WAVE rewards.

LP (Liquidity Provider) tokens are issued when you contribute token pairs (e.g., WCO + USDT) to a liquidity pool. These tokens represent your share in the pool and entitle you to a portion of trading fees and WAVE rewards.

You can stake:

• LP Tokens: Earn WAVE in addition to your share of the 0.3% trading fees.
• WAVE Tokens: Stake directly for high APY rewards (initially targeting ~120%), compounding your earnings over time.

At launch, WAVE staking targets an approximate 120% APY. This yield may fluctuate based on token emissions, pool size, and total value locked (TVL).

Currently, there is no mandatory lock-up period, allowing users to withdraw their staked assets at any time. However, staking for longer periods may maximize returns due to compounding.

WAVE is more than a reward token. It is integrated into multiple layers of the W Chain ecosystem:

• Incentivizes liquidity provision
• Powers staking rewards
• Strengthens protocol sustainability (via 10% treasury allocation)
• Will enable community governance in future upgrades
• May include deflationary mechanisms in future phases

Not at present, but W Chain plans to introduce deflationary features in future protocol updates. These may include token burns, reduced emissions, or governance-driven supply changes

Visit W Swap on W Chain to connect your wallet, add liquidity, and begin staking WAVE or LP tokens.