Why is my 1 npETH less than 1 ETH?

What is npToken?

By liquid staking in NEOPIN, a user will receive “NEOPIN Staked Token” (npToken) at the ratio of “Staked Token” : npToken, where npToken represents the rights to the assets that the user have staked in NEOPIN.

For instance, if User A has sent npToken to User B, the right of User A’s staked assets will be transferred to User B.

Besides, the value of npToken indicates the amount of rewards. Instead of rewards getting accumulated to be claimed, as is the case with single staking products, the value of npToken increases over time.

This is because the amount of npToken remains constant as the asset is staked, while the amount of staked assets increases over time as rewards are automatically re-staked.

For example, if you initially staked 1 ETH and received 1 npETH, over time as your ETH rewards accumulate, you could later claim 1.n ETH for 1 npETH, meaning that the value of npToken can be an indicator of rewards.

In addition, npTokens can be used in DeFi products such as Pool and Swap within NEOPIN and will be available on various partner platforms and DeFi protocols in the future.