🍭aSUGAR in Jiko

Full aSUGAR information: https://app.gitbook.com/o/YafwdGise0hRl8plzFNa/s/A3CHflS4pr3d2XjE70ao/~/changes/75/token-system/usdsugar-token/whats-asugar

aSUGAR Utility = Utility LST + Liquid Asset

aSUGAR is a liquid LST that functions both as a farming tool and a tradable asset. This dual nature gives rise to 3 core strategies for maximizing its utility.

Utilized Strategy

💥 Low risk strategy - LST Mode

Use aSUGAR as a yield farming token for steady, predictable returns:

• Step 1: Stake assets → Mint aSUGAR + Earn base farming APY

• Step 2: Stake aSUGAR → Earn oBERO

💥 Middle risk strategy - Liquid asset Mode:

Use aSUGAR as a liquid asset, provide liquidity for aSUGAR/HONEY pool to earn BGT.

• Step 1: Stake assets → Mint aSUGAR + Earn base farming APY

• Step 2: Provide liquidity to aSUGAR/HONEY → LP token

• Step 3: Stake LP token → Earn BGT

⚡ Degen Strategy - Liquid Asset Mode:

Use aSUGAR as a trading asset to amplify potential gains:

• Step 1: Stake assets → Mint aSUGAR + Earn base farming APY

• Step 2: Trade aSUGAR (both minted and farmed) → Leverage or flip for profit

Key Notes: 2% tax applies on every aSUGAR swap or transfer

💸 Why aSUGAR is attractive to trade?

High volatility:

aSUGAR is pegged to 20 different assets, resulting in high price volatility and creating opportunities for profitable trading, especially for degen traders.

No Inflation:

aSUGAR is a collateral-backed Liquid Staking Token, meaning it is not inflationary. It must be returned to unlock assets, ensuring no free money or dilution - only accountability.

Deflation mechanism:

2% of aSUGAR will be burned with each transfer.

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🧯 Liquidation Risk: The 50% Rule

• If collateral drops below 50% → 7-day timer starts

• You can return aSUGAR to reclaim your assets

• If not → liquidation

• → Proceeds used to buy back & burn aSUGAR 🔥

• → Controlling inflation and preserving staking rewards

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Key Reward Mechanisms:

aSUGAR follows a stake-to-earn model that prioritizes token accumulation over market speculation.

APR Reflects Token Growth

The APR is based on the number of aSUGAR tokens received, not their market value relative to the principal.

This approach ensures transparent and predictable rewards for stakers, as they can predict how many aSUGAR tokens they will accumulate over time based on their staked assets.

Continuous Yield Generation

Users receive aSUGAR as proof of deposit, based on the total value of staked assets.

Additional aSUGAR is earned over time at varying APR rates depending on your staking options.

By defining rewards based on aSUGAR token distribution rather than price fluctuations, the system removes market speculation from APR calculations and ensures fair rewards for long-term stakers.