Mechanics

How does Solido Flow work under the hood?

Solido Flow uses a vault-based staking system. When you deposit SUPRA, the protocol mints stSUPRA tokens for you, which represent your share in the staking vault. Behind the scenes, your SUPRA is delegated to a set of validators managed by Solido’s smart contracts.

The protocol regularly runs a rebalancing process to optimize how funds are distributed across validators and to handle unstaking and withdrawals efficiently.

How does stSUPRA work?

As staking rewards accumulate, the value of stSUPRA keeps increasing, so over time, each stSUPRA can be redeemed for more SUPRA. Plus, it's liquid, meaning you can use it in DeFi or swap it anytime without unstaking.

Example: If 1 stSUPRA = 1 SUPRA today, and 1 stSUPRA = 1.05 SUPRA after some time, Your holding has earned a 5% yield.

Why is there a delay after unstaking before I can withdraw?

When you unstake, your SUPRA needs to be undelegated from the validator nodes. This process isn’t instant because the protocol ensures funds are securely released and settled before making them available. The delay is called the claim period, and it reflects real validator exit cycles and rebalancing logic. Once it's over, you can withdraw your SUPRA.

How is the value of stSUPRA calculated?

stSUPRA follows a share price model. The value increases over time as the protocol earns rewards from validators.

The formula is: Share Price = Total Assets / Total Shares

This means your stSUPRA becomes more valuable as total rewards grow, without needing to mint new tokens.

What happens to rewards during the unstake period?

Rewards stop accumulating on the unstaked amount once you initiate an unstake. Your SUPRA is then queued for withdrawal during the claim period and will be available to withdraw after the validator exit is finalized.

How does Solido Flow manage validator rebalancing?

Rebalancing is handled through a combination of off-chain indexing and on-chain execution. The AutoFi tracks all deposits, withdrawals, and validator performance, then calculates how much to stake, unstake, or hold liquid.

What is AutoFi, and how does it power Solido Flow?

AutoFi is Supra's automation layer that handles validator delegation, reward harvesting, rebalancing, and claim queue logistics. It runs in the background and ensures your SUPRA is staked efficiently without any manual actions needed from you.

Do I need to interact with AutoFi directly?

No. AutoFi operates entirely behind the scenes. When you stake or unstake SUPRA via Flow, AutoFi takes care of the validator-level mechanics, claim queue, and rebalancing automatically.

How does AutoFi choose which validators to stake with?

AutoFi monitors validator performance, uptime, and security scores. It dynamically distributes stake across top-performing validators to maximize rewards and reduce slashing risk.

How does Flow select validators?

Validators are chosen through a performance-based strategy. AutoFi prioritizes nodes with high uptime, low slashing risk, and stable returns, distributing stake across multiple operators for risk diversification.