Introducing Charm LST
Earn real yields from liquid staking token pools.
May 19, 2026
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3 min read
Summary
Polygon Labs chose Charm as the market maker for sPOL, the official LST for POL, and we're launching Charm LST to distribute >97% of market making fees to depositors.
Why Charm LST
Charm LST captures trading fees and distributes them to depositors as real yield, and Charm is the largest market maker for sPOL. By depositing into Charm’s wPOL/sPOL vault, users will earn nearly all the market making fees when sPOL is traded with wPOL.
The Product
Charm's wPOL/sPOL vault is an LST liquidity vault that earns fee income from the wPOL/sPOL 0.01% pool on Uniswap. Users deposit into the vault in one click, and it provides and manages liquidity on their behalf.
The vault is purpose-built to earn yields from trading activities within the pool, it has:
- Tight ranges to capture fees.
- Lower risk — the vault only holds tightly correlated pairs.
- Automated rebalancing to keep the vault's positions optimised around the current price.
- Low performance fee at 2.5% of fees captured, and no AUM fee.
Performance
The vault’s strategy was backtested using 3 years of swap data from the wstETH/WETH 0.01% pool on ETH Mainnet, chosen on the basis of their similarities to the sPOL/wPOL 0.01% pool on Polygon. Here are the estimated returns in the best, worst, and conservative case:
How it works
The vault captures a large share of the trading fees by concentrating liquidity within a tight range. Because wPOL and sPOL move together closely, it's likely the fees generated will exceed the impermanent and permanent losses.
Here's a chart showing how the vault's strategy (in light blue and pink) captures trading fees (in dotted blue) within the backtested pool:
Security
Charm LST uses Charm's liquidity-management contracts — among the most secure in DeFi, with nearly five years of 24/7 operation and no security incidents. The contracts and their forks have managed over $300M in TVL since launching in May 2021, and have undergone 4 audits.
Get Started
Charm's wPOL/sPOL vault is live on Polygon. Connect your wallet and start earning.