# stRWA and wstRWA

stRWA is a liquid version of veRWA that rebases to distribute accrued yield, making veRWA liquid and composable with DeFi protocols.

stRWA is 100% backed by max-locked veRWA.

veRWA holders accrue value from the **re.al** and protocols deployed to it, these positions earn reETH rewards.

With stRWA, this reETH is collected, swapped for RWA, and distributed as daily rebases directly to stRWA holders' wallets.

<figure><img src="/files/su4H3P4nQIyfYk2YQ7v3" alt=""><figcaption></figcaption></figure>

### How It Works

1. Users can mint stRWA with unlocked RWA at <https://www.re.al/app/mint>&#x20;
   1. There is no fee to mint. Locked RWA (veRWA) cannot be used for minting.
2. &#x20;The RWA is max-locked into veRWA, which serves as the backing for stRWA.
3. As veRWA earns reETH yield, this is collected, swapped for RWA, and distributed as daily rebases.
   1. 80% of the RWA from reETH yield is merged into veRWA backing and distributed.
   2. 20% is burned, permanently reducing supply and increasing veRWA yield.
4. stRWA rebases daily to reflect new RWA merged into the backing and automatically distributes to holders wallets.
5. veRWA can be withdrawn from stRWA for a 3.5% fee, giving users full control of their max-locked veRWA position.

{% hint style="info" %}
Rebase and burn allocations are configurable, including the option to retain some yield to overcollateralize stRWA.
{% endhint %}

### Cross-Chain Compatibility

stRWA is natively cross-chain, powered by LayerZero's OFT technology.

When bridged across chains, stRWA is automatically wrapped into wstRWA, which accrues value instead of rebasing. That value can be unlocked by briding back to real where stRWA is received.


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