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Staking is the primary value accrual strategy of Lydian. Stakers stake their LDN on the Lydian website to earn rebase rewards. The rebase rewards come from the treasury proceeds from bond sales, and can vary based on the number of LDN staked in the protocol and the reward rate set by the monetary policy.
Staking is a passive, long-term strategy. The increase in your stake of LDN translates into a constantly falling cost basis converging on zero. This means even if the market price of LDN drops below your initial purchase price, given a long enough staking period, the increase in your staked LDN balance should eventually outpace the fall in price.
When you stake, you lock LDN and receive an equal amount of sLDN. Your sLDN balance accrues rebase rewards automatically in the form of sLDN at the end of every epoch (3x/day), however, you will need to claim the rewards to add them to your balance. If the rewards are not claimed right away, there is not inefficiency, as they have been accruing their own rewards just fine.
Before you can send or wrap your sLDN you will need to claim all rewards first so your balance is updated.
When you unstake, you burn sLDN and receive an equal amount of LDN. Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked LDN (if any) will continue to receive rebase rewards.