aprMON Basics

aPriori empowers staking on the Monad blockchain by unlocking staked liquidity and enhancing yield with MEV rewards. Users can deposit MON into aPriori’s staking vault contract, which automatically delegates the tokens to a curated list of high-performing and reliable validators.

By distributing tokens across multiple validators and actively rebalancing delegations, aPriori helps ensure Monad's decentralization.

The aPriori staking vault is fully ERC-4626 compliant and issues aprMON tokens to users when they stake their MON tokens, which represent their share of the vault and earned rewards.

aprMON - Reward Bearing Token

In the context of Liquid Staking Tokens (LSTs), there are two common approaches to distributing staking rewards: reward-bearing tokens and rebasing tokens.

1. Reward-Bearing Tokens:

   • How They Work: Reward-bearing tokens, like aprMON, do not automatically adjust the number of tokens in circulation. Instead, the token’s value increases as rewards are generated. When you hold a reward-bearing token, you maintain the same number of tokens in your wallet, but the value of those tokens increases over time as the staking rewards accumulate.

   • Key Characteristics:

     • Constant Supply: The number of tokens you hold remains the same.

     • Increasing Value: As staking rewards are generated, the value of your tokens increases.

     • Rewards Collection: You can redeem the rewards or sell the token for its appreciated value at a later time.

2. Rebasing Tokens:

   1. How They Work: Rebasing tokens adjust their supply regularly in response to changes in rewards, demand, or other economic factors. When staking rewards are earned, the supply of tokens in circulation is increased or decreased, and your wallet balance is automatically updated to reflect this. For example, if the token is tied to a staking pool, the rebasing function will distribute the rewards across the holders by increasing the total supply, so each holder gets more tokens, even though they haven't deposited additional funds.

   2. Key Characteristics:

      • Dynamic Supply: The number of tokens in circulation changes periodically.

      • Automatic Balance Adjustments: The number of tokens in your wallet increases or decreases based on the changes in the token supply.

      • Rewards Distribution: The rewards are distributed as new tokens, which are added directly to your wallet.

aprMON uses the reward-bearing model. When you stake MON tokens in the aPriori staking vault, you receive aprMON tokens, which represent your claim to the staking rewards. As rewards accumulate, the value of each aprMON token increases, but the number of aprMON tokens you hold remains unchanged.

Unlike rebasing tokens that automatically adjust supply, this approach captures rewards through the growing value of aprMON, not by changing token balances. This approach provides greater composability with DeFi protocols in the ecosystem.