> For the complete documentation index, see [llms.txt](https://docs.avely.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.avely.fi/how-it-works/stzil-token.md).

# stZil token

When users [delegate](https://docs.avely.fi/reference/faq#what-is-delegation) ZIL or [transfer staked ZIL](https://docs.avely.fi/reference/faq#what-is-transfer-staked-zil) to Avely Finance smart contract they get a newly minted stZIL token. stZIL token is a tokenized version of staked ZIL and it's completely backed by staked ZIL. stZIL is a fungible token. stZIL token is transferable and can be used in other Defi protocols.

Users receive stZIL by its honest stZIL/ZIL price stored in Avely Finance smart contract. At the beginning 1 stZIL is equal to 1 ZIL. But after each reward claim an honest stZIL/ZIL price grows. It happens because no new stZIL is minted after rewards claim so after each rewards claim each stZIL is backed by more ZIL.

An honest stZIL/ZIL price can be counted using the following formula: **1** stZIL **= Total ZIL staked in Avely Finance smart contract / Total stZIL**. Total stZIL can be counted using the following formula: **Total stZIL = Total minted stZIL - Total burned stZIL**.

Users can always withdraw staked ZIL in exchange for their stZIL. Their stZILwill be burned and they will get ZIL using standard withdrawal terms (30800 blocks waiting period). They will receive ZIL according to the fair price of stZIL/ZIL which includes all staking ZIL rewards.

### Auto restaking

As soon as a reward appears Avely Finance protocol claims a reward and restakes ZIL. This process happens fully automatically so no additional transactions are required from a user.

### An honest stZIL/ZIL price graph

stZIL/ZIL price is predictable and can be counted approximately using the following formula:

![stZIL/ZIL price formula](/files/3yDR3VjoW1MGHraDKBLh)

ZIL staking APR can be taken from [Zilliqa Staking Application](https://stake.zilliqa.com/) (EST. Real time APR %). This formula gives us only an estimated result because one of the values in this formula is estimated and can vary. Also this formula does not include a seed node fee and Avely Finance management fee. stZIL/ZIL price growth faster than a linear graph because of compound % (after each reward claim Avely Finance smart contract restakes ZIL).

For example if ZIL staking APR = 13% we get the following graph:

![y axis is the price (ZIL), x axis is a time (days)](/files/ZuIiyDYSSGa03P1JiL2a)

![An estimate stZIL/ZIL price graph, y axis (ZIL), x axis (days), EST. ZIL Realtime APR 13%](/files/ydcsgHwTUMtonmgX5H2x)


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