YLAY Staking
Introduction
YLAY staking is a core mechanism of the Yelay protocol that allows token holders to participate in protocol governance and earn rewards. By staking YLAY tokens, users receive non-transferable sYLAY (shard YLAY) which represents their share of protocol rewards, including integrator rewards and partner token distributions.
💡 Key Concept: The more sYLAY you hold, the larger your share of protocol rewards.
Staking Methods
⌚ Gradual Staking
Gradual staking offers users a flexible approach to accumulating sYLAY over time. When you choose this method, your sYLAY accumulates linearly across a 208-week period, allowing you to earn rewards while maintaining the freedom to unstake at any time. This option is particularly attractive for users who value liquidity and want the flexibility to adjust their position as needed. While unstaking is available at any time, it's important to note that this action will result in the loss of all accumulated sYLAY, requiring you to start fresh if you choose to stake again.
🔓 Locked Staking
Locked staking provides an accelerated path to sYLAY accumulation by offering an immediate boost to your sYLAY balance in exchange for committing your YLAY tokens for a specified period. This method appeals to users who are confident in their long-term commitment to the protocol and are willing to temporarily forfeit liquidity in exchange for enhanced rewards. During the lock period, you cannot unstake your YLAY tokens, but you benefit from an upfront increase in your sYLAY balance that would have otherwise taken weeks or months to accumulate through gradual staking.
Understanding sYLAY
sYLAY serves as your reward-earning representation within the Yelay ecosystem. As a non-transferable token, sYLAY directly reflects your stake in the protocol and determines your proportional share of rewards. The way you accumulate sYLAY varies based on your chosen staking method, with each approach offering distinct advantages. It's crucial to understand that your sYLAY balance is tied to your staking commitment – if you choose to unstake your YLAY tokens, you'll forfeit your accumulated sYLAY, except for amounts earned during locked periods. This mechanism encourages long-term participation and alignment with the protocol's goals.
What Happens After Lock Expiry?
When your locked staking period comes to an end, your position transitions to what we call "Unlocked YLAY." During this phase, your staking rewards temporarily pause, but you gain the flexibility to choose your next steps. You can either unstake your position, which will result in you losing your accumulated sYLAY, or continue locking to maintain these sYLAY rewards. This transition period requires active management of your position, as your YLAY tokens remain in the contract but aren't generating additional sYLAY until you take action. The choice between claiming and re-locking allows you to adapt your strategy based on current market conditions and your investment goals.
Choosing Your Staking Strategy
Consider these factors when selecting your staking method:
🔄 Flexibility Needs
Gradual: Maximum flexibility, can unstake anytime
Locked: Limited flexibility, more immediate rewards
Unlocked: Flexible after lock expiry
⏳ Time Horizon
Gradual: Best for uncertain time horizons
Locked: Ideal for known commitment periods
Unlocked: Transition period requiring action
💰 Reward Preferences
Gradual: Steady, predictable accumulation
Locked: Front-loaded rewards
Unlocked: Requires active management
📚 Dive Deeper:
Understanding Gradual Staking
Understanding Locked Staking
Managing Unlocked YLAY
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