What is the benefit of wrapping your sNMS

Nemesis PRO
2 min readJan 22, 2022

Tax for the rebases? No, thanks.

When you wrap your sNMS you are still benefiting from the rebases, just in a different way. Every rebase increases the Index on the site. When you unwrap your wsNMS you receive an amount of sNMS equal to wsNMS x Index.

Wrapping is beneficial to people that live in countries that have tax laws that involve rebases as a taxable event. wsNMS avoids this by not increasing the amount of wsNMS each rebase but increasing how much sNMS you will get back when you unwrap. You can think of wrapping like changing rebases to increasing your quantity each time to increasing the value of your bag each rebase.

If you live in a country where every rebase is taxable (like US and UK), wrapping is for you if you are a holder. Your wsNMS amount stays the same but it’s now connected to an index multiplier that will increase every rebase. When you unwrap you multiply your wsNMS by this index and get all your rewards in sNMS (which are exactly the same as if you were just staking sNMS only — but just not dealing with the taxes each rebase).