LYRA holders can stake their LYRA tokens to receive Staked LYRA (stkLYRA). Stakers obtain governance powers proportional to their stkLYRA balance. Initially, there are two powers associated with the stkLYRA token:
- 1.Proposal right: Allows the creation of a new proposal.
- 2.Voting right: Enables voting on existing proposals.
Stakers earn stkLYRA rewards proportional to their stkLYRA balance. Staking rewards are continuously emitted from the time of staking.
When unstaking LYRA, users are subject to a 14 day cooldown. During this cooldown users cannot earn staking rewards and their boosts on vault and trading rewards are temporarily disabled.
After the 14 day cooldown users can unstake any amount of stkLYRA for a 2 day unstaking window. After the 2 day unstaking window ends, users will continue to earn staking rewards and their vault and trading boosts will be restored. Stakers will be subject to another 14 day cooldown when they wish to unstake in the future.
The stkLYRA contract is a fork of Aave's safety module contract. You can read about Aave's safety module here.