# Example: Rebase rewards

### Both your sLDN and wLDN will earn rebase rewards. How does this work?

#### *Staking*

Let's assume you have 500 LDN and stake it for 500 sLDN. In total 5000 LDN is staked. The next rebase distributes 50 sLDN.

You have 10% of all sLDN, so you will get 5 sLDN as rewards. These rewards need to be claimed manually. Rewards not claimed do still receive rewards on next rebase.

#### *Wrapping*

Let's assume you have 500 LDN and the index is currently 1.25. In total 5000 LDN is wrapped so there is 4000 wLDN.

You wrap 500 LDN to 400 wLDN. Now a rebase happens which distributes 50 sLDN.

The 4000 wLDN is now representing the initial 5000 sLDN plus the 50 sLDN as rewards. So the index increases to 1.2625. You still have 400 wLDN in your wallet, but these now represent more sLDN.


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