The War for Your Staked MON
In Week 1, you set up your wallet. Now, let's put that MON to work.
If you hold MON in your wallet, you are losing money to inflation. Staking is the answer, but traditional staking locks your funds. Enter Liquid Staking Tokens (LSTs): you stake your MON and get a receipt token (like gMON or sMON) that you can use in DeFi while still earning staking rewards.
On Monad, we have a diverse ecosystem of providers. Let's look at two of the leaders: Magma and Kintsu.
Option 1: Magma (Deep Liquidity)
Magma focuses on integration with DeFi protocols from day one.
- Token:
gMON - Key Feature: Auto-compounding rewards. The value of
gMONgoes up vs MON over time. - Best for: Users who want a "set it and forget it" yield that automatically grows in value.
Option 2: Kintsu (Validator Diversity)
Kintsu emphasizes decentralization and validator health.
- Token:
sMON(Staked MON) - Key Feature: Reward-bearing architecture designed for composability.
- Best for: Users who prioritize network health and open validator sets.
Comparison at a Glance
| Feature | Magma (gMON) | Kintsu (sMON) |
|---|---|---|
| Token Model | Value Accruing (Price ↗) | Value Accruing (Price ↗) |
| Unbonding | ~10 Days (Protocol) / Instant (DEX) | ~10 Days (Protocol) / Instant (DEX) |
| Fees (Est.) | DAO Governed | ~1% Protocol Fee |
| Primary Focus | Deep DeFi Integration | Validator Decentralization |
Strategy: How to Maximize Yield
Don't just hold the LST. Loop it.
- Stake: Convert MON to
gMONorsMON. - Provide Liquidity: Pair it with
MONon a DEX to earn trading fees.
This "Double Yield" strategy (Staking + Trading Fees) is the foundation of DeFi productivity.
The Verdict: Balance is Key
While we call it a "war," the reality is that a healthy ecosystem needs multiple options. Magma pushes efficiency, while Kintsu ensures decentralization.
- Diversification: The smartest play isn't picking one winner. It's splitting your bag.
- Safety: By using both, you hedge against smart contract risk and support the entire Monad network.
Ultimately, whether you choose gMON or sMON, the real win is that your assets are active, liquid, and earning yield.
Next Up: Now that you have your LSTs, learn how to farm them in Yield Farming 101.
