Locking & Staking

Users can share in the protocol revenue by either staking $LEND in a flexible staking contract, or locking their $LEND, granting them access to the revenue created from early unlocks i.e. penalty fees in the tokens that are taken from users that decide to unlock their tokens early. By implementing this design we will reward users that stick with Lendle for the long term rather than incentivizing flash farmers. Since Lendle generates fees on the tokens that are available on our lending market, users will receive the revenue share in the form of these assets. For example, when you claim your rewards you will receive some BTC, ETH, USDC, MNT, and USDT.

What is Staking?

$LEND stakers receive 40% of the protocol revenue, while you can exit staking, without taking a penalty, at any time during your staking period.

What is locking?

As with staking, when you lock $LEND, you will receive a share of the protocol fees. Additionally, because you are committed to the Lendle protocol for 3 months, you will also receive penalty fees from those exiting their reward vesting periods early. You cannot exit a lock early.

How does it work?

For borrowers and lenders:

  • Once claimed, $LEND rewards are vested for three (3) months, but can be withdrawn at any time with a 50% penalty.

  • Exiting the three (3) month vest early will always incur a 50% penalty, no matter how late or early during these three (3) months you exit.

  • The 50% penalty is continuously distributed to those who lock $LEND.

For lockers:

  • The locked $LEND is subject to a mandatory three (3) months lockup, and cannot be unlocked early.

  • The lock dates are grouped by week. Any lock between Thursday 00:00 UTC and Wednesday 23:59 UTC will be grouped in the same week group, and will be released at the same time three (3) months later.

  • $LENDrewards from locking $LEND can be claimed anytime without incurring a penalty. You will keep the APR for locking $LEND after the three (3) months lock until you claim the newly unlocked $LEND.

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