Wrapping sHEC (wsHEC)

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What is wsHEC?

Users can choose to Wrap their sHEC, which converts it to a standardised ERC20 token.
Users can also unwrap their wsHEC tokens to receive sHEC at any time.

Why is this relevant?

In many countries, there is a clear distinction between Income Tax and Capital Gains Tax.
  • Income Tax applies to regular income, usually received for work done.
  • Capital Gains Tax applies to money gained from (for example) the sale of an asset like a house or investment.
In many cases, Capital Gains Tax is lower than Income Tax, and so it may be dilligent to make it as clear as possible to the taxation authorities of your country/jurisdiction that you are receiving a capital gain.

How does it work?

Users can wrap their sHEC tokens on our dApp.
The wsHEC token price is calculated as follows:
sHECPrice∗IndexsHEC Price * Index
The price of sHEC is always equal to the price of HEC, and the Index is a number used to track the value added to a staked token by rebases. Therefore, the price of wsHEC will change as if it were rebasing, without needing to rebase.