After the user converts STEEM into SP, SP cannot be traded, let alone borrowed as collateral. SP holders received staking rewards, but lost the liquidity of the corresponding assets. tToken was launched under such market conditions.
# Stake LP Token
tToken (tradeToken) represents the liquidity certificate of Staking Token. For example, TSP stands for liquid and tradable SP. Holding TSP can not only get staking rewards, but also use TSP as collateral for lending, or provide liquidity for TSP-TRX trading pairs, and obtain transaction fees and liquidity mining rewards.
Peanut provides corresponding solutions to realize the above scenarios. Through peanut.nutbox.io, STEEM holders can convert 1 STEEM into 1 TSP, and can also redeem TSP 1:1 into STEEM at any time.
Because TSP represents the delegated SP, it takes 5 (5 days for delegation withdrawal time) + 28 days to redeem TSP into STEEM (SP to STEEM requires 4 weeks equivalent conversion).
# Using scenarios of TSP
TSP greatly expands the SP’s scene. Holding 1 TSP is equivalent to holding 1 SP that has been delegated. Depositing 1 TSP into the corresponding Nutbox mining pool is equivalent to the delegate 1SP to nutbox.mine, and you will also receive the same amount of PNUT rewards.
- Holding 1 TSP is equivalent to holding 1 SP, that is, TSP holders can get the same amount of staking rewards;
- TSP can trade on the open market at any time;
- TSP holders can provide liquidity for TSP-TRX trading pairs, deposit liquidity certificates into TSP-TRX LP mining contracts, and receive staking rewards, transaction fee rewards and liquidity mining rewards;
- TSP can borrow assets such as USDT or STEEM on the loan platform;