# System Overview



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The Splashing SEI Staking system is a liquid staking protocol that allows users to stake SEI tokens and receive stSEI (staked SEI) tokens in return. The system implements advanced mechanisms for buffer management and validator priority to ensure optimal capital efficiency and risk management.

#### Key Mechanisms

* **Buffer Management**: Dynamic liquidity pool for instant unstaking
* **Validator Priority**: Intelligent capital allocation across validators
* **Reward Reinvestment**: Automatic reward compounding
* **Fee Optimization**: Tiered fee structure for economic efficiency
