SUI Blockchain’s Largest Memecoin fudSUI Becomes a Liquid Staking Token

Fudthepug, a popular meme project on the SUI blockchain, last week launched a liquid staking token (LST), fudSUI.

fudSUI is a meme LST based on the Fudthepug project that lets users access their staked SUI tokens while earning rewards. The approach is novel in that memecoins don’t usually have utility beyond speculating on an internet trend, personality or joke.

The token currently trades at $3.20 and has a market cap of $799,000.

fudSUI was issued using the SpringSUI standard, a novel liquid staking standard on SUI, and is available for staking on Suilend, a lending and borrowing platform on that blockchain.

Fudthepug is the OG SUI meme project. It was initially airdropped to the community for free in December 2023. Since then, it has become the network’s number one community coin.

Meme LSTs: A New Meta

Liquid staking allows crypto holders to earn staking rewards without locking up their assets. Instead of directly staking tokens with a validator, users delegate them through a liquid staking provider, which issues a tokenized representation of their staked assets, or a liquid staking token (LST). These tokens can then be used in other decentralized finance (DeFi) applications while the underlying assets remain staked and earning rewards.

Now, a new class of LSTs is emerging. fudSUI claims to be the first-ever meme LST and is based on Fudthepug, a popular SUI-based meme project. It is listed on the Suilend borrowing and lending platform and has a 70% loan-to-value (LTV) and a $100,000 deposit limit.

SUI Network Issues

The token's launch came at the same time as a two-hour network outage on the SUI network. The chain quickly addressed the situation in an X post, stating that a bug caused the crash.

“The Sui network is back up and processing transactions again, thanks to swift work from the incredible community of Sui validators.

The 2-hour downtime was caused by a bug in transaction scheduling logic that caused validators to crash, which has now been resolved,” the tweet read.

This is the second time SUI has experienced one this year. The event caused SUI’s price to plummet, but it has shown signs of recovery. It has been 4.99% down in the past 24 hours.