# stBGT

## Mechanics

### Overview

* Unlike other LSTs, `stBGT` will not have staking. Withdrawal from legacy staking will be available, but no new staking will be enabled and there will be no staking APR.
* Redemptions are live. Minting and redemption fees are both `5%`.
* Protocol revenue from boosting, minting, redemptions, and `BREAD` usage will be focused on placing bribes for the [stBGT-BERA Reward Vault](https://hub.berachain.com/earn/0xcf77d23cfc561e34e3b6137c736ea5cb395bcda0/), and the [BakerDAO Debt Reward Vault](https://hub.berachain.com/earn/0xbe703c50c176336602aefe48c74e9cc15426db97/).
  * In addition, stBGT may *only* be minted via these Reward Vaults to make it a scarce asset

### Minting

stBGT may only be minted via:

1\) Having active and eligible debt on BakerDAO

2\) LPing the [stBGT-BERA Kodiak island](https://app.kodiak.finance/#/liquidity/pools/0x8b161685135e9fbc5475169e1addc0f2c4b7c343?farm=0xcf77d23cfc561e34e3b6137c736ea5cb395bcda0\&chain=berachain_mainnet), and staking on the stBGT [app](https://bgt.bakerdao.io/earn). 

Underlying protocol `BGT` is strategically delegated to validators to optimize Boost APR. 

<figure><img src="/files/APwPR9r6rVRynrfuIkzP" alt=""><figcaption></figcaption></figure>

### Redemption

`stBGT` may be redeemed at any time for the underlying `BGT`, which is burned for `BERA` and awarded to the user. Redemption carries a `5%` fee.

## Relationship with Incentivized Borrowing

`BGT` awarded to eligible users with BakerDAO debt, as outlined in [stBGT-Incentivized Debt](/stbgt-incentivized-debt.md) will be used to mint `stBGT`, and will be delivered as such. Merkl will be used as a means of distribution fo rewards to eligible users.


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