# Overview

<div data-with-frame="true"><figure><img src="/files/CQWLt4HOav9RRyJmfTVj" alt=""><figcaption><p><a href="https://alphafi.xyz/stsui">https://alphafi.xyz/stsui</a></p></figcaption></figure></div>

### What is stSUI? <a href="#how-stsui-works" id="how-stsui-works"></a>

stSUI is a token that represents staked SUI. When you stake SUI through AlphaFi, you receive stSUI at the current exchange rate. As your staked SUI earns rewards, the rate between stSUI and SUI grows over time.

stSUI is freely transferable. You can hold it, trade it, or use it in DeFi.

### What is an LST?

LST stands for **Liquid Staking Token**. It's a tokenized claim on staked assets that lets the holder:

* **Earn staking rewards** — your tokens are staked and accruing yield in the background
* **Use the token in DeFi** — trade it, lend it, supply it as collateral
* **Unstake quickly** — without waiting through long cooldown periods

Without an LST, staked SUI is locked. You earn rewards but can't use the tokens for anything else.

#### How it works

<div data-with-frame="true"><figure><img src="/files/7N4cX16ZOA1MkfPg6Yl8" alt=""><figcaption></figcaption></figure></div>

stSUI follows a four-step user flow:

<table><thead><tr><th width="160.4296875">Action</th><th>Description</th></tr></thead><tbody><tr><td><strong>Stake</strong></td><td>Deposit SUI, receive stSUI</td></tr><tr><td><strong>Hold</strong></td><td>stSUI grows in value as staking rewards accrue to the pool</td></tr><tr><td><strong>Use</strong></td><td>Transfer, supply as collateral, or use in DeFi — all while earning rewards</td></tr><tr><td><strong>Unstake</strong></td><td>Redeem stSUI for SUI instantly</td></tr></tbody></table>

Under the hood, the protocol delegates your SUI to validators on the Sui network. Each epoch, rewards come in and get added to the pool backing stSUI. The exchange rate rises.

#### Core Actions (Stake / Unstake)

There are only two on-chain actions a user takes:

* **Stake** — Deposit SUI to receive stSUI at the current exchange rate.
* **Unstake** — Redeem stSUI back to SUI, instantly, in one transaction.

Holding and using stSUI in DeFi require no further interaction with AlphaFi.

#### Key Features

* **Instant unstaking.** Redeem stSUI for SUI in a single transaction. No cooldown period.
* **Yield built into the exchange rate.** No claiming or compounding needed. The token appreciates against SUI as rewards accrue.
* **Multi-validator delegation.** Staked SUI is distributed across multiple validators based on configured weights.
* **DeFi-composable.** stSUI can be used as collateral, in liquidity pools, or in yield strategies on Sui.
* **Open source.** The smart contracts and SDK are publicly available.


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