> For the complete documentation index, see [llms.txt](https://fluxtra-lsd.gitbook.io/fluxtra-lsd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fluxtra-lsd.gitbook.io/fluxtra-lsd-docs/core-features/flux-amplifier.md).

# Flux Amplifier

## **Yield Amplifier**

Fluxtra’s Yield Amplifier is the core mechanism that transforms staked assets into liquid representations, ensuring uninterrupted yield generation. This system allows users to stake their native assets and receive **ftOM** (e.g., ftOM for OM stakers), which can be freely utilized across the DeFi ecosystem while still earning rewards.

**How the Yield Amplifier Works**

1. **Token Deposit:** Users deposit their native assets (e.g., OM) into the smart contract.
2. **Minting of Liquid Staking Tokens:** The protocol issues **ftOM**, representing the staked asset, in a 1:1 ratio.
3. **Rewards Accumulation:** The staked tokens continue generating yield, with rewards automatically compounded within the system.
4. **DeFi Utility:** ftOM can be used across lending, yield farming, and other DeFi strategies.
5. **Flexible Unstaking:** Users can either swap ftOM on secondary markets for immediate liquidity or unstake them through the withdrawal system, subject to the network’s standard unbonding period.

### **Advantages of the Yield Amplifier**

* **Seamless Yield Generation:** Users earn staking rewards while retaining asset mobility.
* **Optimized APY:** Auto-compounding ensures consistent reinvestment of earnings.
* **Immediate Liquidity:** ftOM holders can trade or deploy their tokens freely.
* **Enhanced Network Security:** Staked assets contribute to the chain’s security while remaining accessible for DeFi integration.

### **Use Cases for ftOM**

* **Liquidity Provision:** Stake ftOM in AMMs to earn additional yield.
* **Leveraged Staking:** Use ftOM as collateral for borrowing, enabling leveraged staking.
* **Yield Stacking:** Maximize returns by engaging in multi-layered DeFi strategies.

The Yield Amplifier unlocks a new paradigm of capital efficiency, combining the benefits of staking with DeFi composability.

### Fees

* Deposit Fees: 0 %
* Withdrawal Fee: 0 %
* Performance Fees: 5% of Validator yield

{% hint style="warning" %}
For example, if Validator yield is 8%, Performance Fees will be 0.4% (5% x 8%)
{% endhint %}


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