How stCHR Works

stCHR is Udon’s Liquid Staking Token (LST) for CHR — it lets you keep earning validator rewards from Chromia while staying liquid. Instead of locking your CHR for 14 days like in traditional staking, Udon lets you stake, receive stCHR instantly, and continue using it in DeFi.

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How stCHR Works

When you stake CHR through Udon:

• Your CHR is delegated to Chromia validators (just like normal staking).

• You instantly receive stCHR — a tokenized representation of your staked CHR.

• Your CHR continues to earn validator rewards on the Chromia network.

• The rewards accumulate and automatically transfer to your Udon account.

Think of stCHR as a receipt for your staked CHR — but this receipt keeps increasing in value over time.

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The stCHR Lifecycle

Below is what happens at each stage:

1

Stake

Action:

• You stake CHR on Udon

Result:

• CHR is delegated to Chromia validators

2

Mint

Action:

• Udon mints and sends stCHR to your wallet

Result:

• You receive stCHR asset instantly

3

Earn

Action:

• CHR appreciates in value

Result:

• Rewards from validators increase your CHR worth

4

Supply (optional)

Action:

• You use stCHR in Udon markets

Result:

• Earn extra APR from DeFi incentives

5

Redeem

Action:

• You redeem stCHR back to CHR

Result:

• Starts the 14-day unbonding period

6

Unbond complete

Action:

• After 14 days

Result:

• CHR is released to your wallet

Tip: You can use your stCHR during the earning phase — supply it, trade it, or hold it. Your staked CHR keeps working for you underneath.

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Maintaining the 1:1 Peg with CHR

stCHR is always backed by real staked CHR on the Chromia network. This ensures it can always be redeemed 1:1 for CHR (after the unbonding period).

However:

• In secondary markets, stCHR’s price may slightly move above or below 1 CHR (depending on liquidity).

• The protocol ensures that, no matter the market price, the redemption value remains fixed based on the current exchange rate.

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Value Growth Model

Here’s how your stCHR gains value step-by-step:

1. Validators earn staking rewards on your delegated CHR.

2. Udon aggregates those rewards across all stakers.

3. The exchange rate between stCHR and CHR increases slightly.

4. Your stCHR automatically becomes more valuable — no manual claim needed.

This means your yield is auto-compounded into the token’s value.

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In Simple Terms

If you stake 1,000 CHR on Udon:

• You instantly get 1,000 stCHR.

• You will receive daily rewards which are transferred to your account.

• You can use your stCHR to earn even more in Udon’s DeFi markets.

• When you’re done, redeem it to start the 14-day unstake timer and get your CHR back.

Udon makes staking smarter: you keep your liquidity, earn continuously, and stay fully connected to Chromia’s validator rewards.