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Deposit

Deposit

Stakers deposit ETH or LSTs to Resquared Vault contract to mint sqETH. At the protocol's inception, sqETH's conversion rate is one-to-one, but is expected to increase over time (assuming more rewards than penalties).

The conversion rate is calculated as follows:

Conversion Rate=deposits+rewardspenaltiessqETH supply\text{Conversion Rate} = \frac{\text{deposits} + \text{rewards} - \text{penalties}}{\text{sqETH supply}}