Documentation Index
Fetch the complete documentation index at: https://docs.inkwell.finance/llms.txt
Use this file to discover all available pages before exploring further.
Liquid IKA (LIKA)
LIKA is Inkwell’s liquid staking token for IKA. Deposit IKA, receive LIKA, and use it across DeFi — all while your underlying IKA earns staking rewards.
How it works
LIKA follows the wstETH model — a rising exchange rate token. You don’t receive periodic reward payouts. Instead, the IKA value backing each LIKA increases over time as staking rewards accrue.
| Action | What happens |
|---|
| Mint | Deposit IKA → receive LIKA at the current exchange rate |
| Hold | LIKA’s exchange rate rises each epoch as rewards compound |
| Redeem | Burn LIKA → receive IKA (instant from reserve, or 1-2 epoch delay via ticket) |
Example
- You deposit 100 IKA when the rate is 1 LIKA = 1.00 IKA → you receive 100 LIKA
- After some time, staking rewards push the rate to 1 LIKA = 1.05 IKA
- You redeem 100 LIKA → you receive 105 IKA
You never had to unstake, wait for cooldowns, or pick validators yourself.
Exchange rate
The LIKA/IKA exchange rate is calculated mark-to-market using the IKA network’s calculate_rewards() function. This accounts for all accrued but unrealized staking rewards across every validator position the pool holds.
exchange_rate = total_ika_value(pool) / total_lika_supply
Redemption
Redeeming LIKA is designed to never fail. The contract returns whatever IKA is available instantly, plus a ticket for the rest:
| Scenario | What you get |
|---|
| Reserve has enough | Full IKA amount, instantly |
| Reserve partially covers | Partial IKA instantly + a RedemptionTicket for the remainder |
| Reserve empty | A RedemptionTicket for the full amount |
RedemptionTicket is a transferable object. It becomes claimable after 1-2 epochs when the underlying stake finishes the unstaking cooldown.
Validator allocation
The pool stakes IKA across multiple validators using admin-set weights. A permissionless keeper system manages the lifecycle:
| Keeper function | What it does | Who can call |
|---|
harvest_withdrawals | Claims matured unstakes, fills the reserve | Anyone |
crank_unstake | Initiates unstaking to cover pending redemption tickets | Anyone |
rebalance | Moves stake toward target weights using new deposits | Anyone |
Lazy rebalancing
The pool uses lazy rebalancing: new deposits are directed to underweight validators rather than actively moving existing stake. This avoids the 2-4 epoch reward gap that comes with unstake-restake cycles.
Fee model
Single fee: 10% protocol reward share. No mint fee, no redeem fee.
- Protocol earns only when stakers earn
- Zero friction on entry/exit maximizes TVL growth
- Aligned incentives — the protocol is motivated to optimize validator selection and keep APY high
DeFi composability
LIKA is a standard Sui Coin, fully composable with the Sui DeFi ecosystem:
| Integration | Status |
|---|
| DEX liquidity (Cetus, Turbos) | Planned |
| Lending collateral (Suilend, Scallop, NAVI) | Planned |
| Leviathan cross-chain collateral | Future (via IKA dWallet bridge) |
Risks
| Risk | Impact | Mitigation |
|---|
| Shared object contention | Every mint/redeem touches the pool AND IKA System objects | Inherent to IKA’s architecture. Acceptable for LST throughput. |
| Keeper liveness | Tickets can’t be claimed if nobody runs keeper functions | Permissionless — any bot can call. Incentive alignment through gas rebates planned. |
| Validator exit | Idle capital until withdrawal processes | harvest_withdrawals handles exited validators automatically |
| Low reserve | Large redemptions may require tickets instead of instant IKA | Never-abort design: you always get IKA or a ticket, never a failed transaction |
