> ## Documentation Index
> Fetch the complete documentation index at: https://docs.limora.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Staking Overview

> Earn real yield in USDC by staking your LIMORA tokens

Staking on Limora is designed to provide **Real Yield** to token holders. By staking your LIMORA tokens, you earn a share of the protocol's revenue in **USDC**, not inflationary tokens.

***

## How Staking Works

When you stake LIMORA, you receive **stLIMORA** (Staked LIMORA) as a receipt token. This token represents your share of the staking pool.

As traders open positions and pay fees on the platform, a portion of that revenue is automatically distributed to the staking vault.

```mermaid theme={null}
sequenceDiagram
    participant T as Trader
    participant P as Protocol
    participant V as Staking Vault
    participant S as Staker

    T->>P: Pays Trading Fees (USDC)
    P->>V: Deposits 20% of Fees (USDC)
    
    rect rgb(240, 248, 255)
        Note right of S: Staker Actions
        S->>V: Stakes LIMORA
        V->>S: Mints stLIMORA
    end

    loop Continuous
        V-->>S: USDC Rewards Accumulate
    end

    S->>V: Claims Rewards
    V->>S: Sends USDC
```

***

## The Staker's Role

As a staker, you are a long-term participant in the protocol's success. By locking your LIMORA tokens, you align your incentives with the platform's growth and earn a direct share of the revenue generated by trading activity.

| Activity     | Role               | Reward                  |
| :----------- | :----------------- | :---------------------- |
| **Stake**    | Lock LIMORA tokens | Receive stLIMORA        |
| **Hold**     | Maintain stake     | Accrue USDC rewards     |
| **Compound** | Reinvest rewards   | Increase protocol share |

***

## Real Yield vs. Inflationary Rewards

Limora's staking model is fundamentally different from many DeFi protocols that pay rewards in their own native token (which often leads to sell pressure and price depreciation).

| Feature              | Limora Staking             | Typical DeFi Staking     |
| :------------------- | :------------------------- | :----------------------- |
| **Reward Token**     | **USDC** (Stablecoin)      | Native Token (Volatile)  |
| **Source**           | **Real Protocol Revenue**  | Inflationary Minting     |
| **Sustainability**   | Sustainable (Value-backed) | Unsustainable (Dilutive) |
| **Impermanent Loss** | **None** (Single-sided)    | High (if LP staking)     |

***

## Why Stake?

<CardGroup cols={2}>
  <Card title="Earn USDC" icon="dollar-sign">
    Receive rewards in stable USDC, immune to Limora token price volatility.
  </Card>

  <Card title="No Lock-up for Rewards" icon="unlock">
    Claim your accumulated USDC rewards at any time without unstaking.
  </Card>

  <Card title="7-Day Cooldown" icon="hourglass">
    Unstaking requires a 7-day cooldown period to prevent flash-loan attacks and ensure fairness.
  </Card>

  <Card title="Compounding" icon="chart-line">
    Manually compound your position by using earned USDC to buy more LIMORA.
  </Card>
</CardGroup>

***

## Reward Distribution

The staking vault receives **20%** of all protocol revenue, which comes from:

1. **Opening Fees**: Charged when traders open a position.
2. **Interest**: Hourly interest paid by traders to lenders (matchers).

These rewards are distributed proportionally to your share of the total staked LIMORA.

<Note>
  **Example**: If the protocol generates $100,000 in fees this week, $20,000 (20%) goes to the staking vault. If you own 1% of the staked LIMORA, you earn **\$200 in USDC**.
</Note>

***

## Managing Your Stake

### Staking

1. Go to the **Staking** page.
2. Approve the contract to spend your LIMORA tokens.
3. Enter the amount of LIMORA you want to stake.
4. Confirm the transaction to receive **stLIMORA**.

### Unstaking

1. Navigate to the **Unstake** tab.
2. Initiate the unstake process.
3. Wait for the **7-day cooldown** period to complete.
4. After the cooldown, confirm the transaction to burn stLIMORA and receive your LIMORA back.

### Claiming Rewards

1. Check your "Pending Rewards" on the dashboard.
2. Click **Claim Rewards**.
3. Confirm the transaction to receive USDC directly to your wallet.

***

## Frequently Asked Questions

<AccordionGroup>
  <Accordion title="What is stLIMORA?">
    stLIMORA is a non-transferable receipt token that proves you have staked LIMORA. You need it to claim rewards and to eventually retrieve your original LIMORA tokens.
  </Accordion>

  <Accordion title="Is there a lock-up period?">
    There is no lock-up for claiming rewards. However, if you want to withdraw your principal (LIMORA tokens), there is a **7-day cooldown period** starting from the moment you initiate the unstake request.
  </Accordion>

  <Accordion title="Where does the yield come from?">
    The yield comes entirely from real trading activity on the platform. Traders pay fees to open positions and interest to borrow leverage. A portion of these real cash flows is directed to stakers.
  </Accordion>

  <Accordion title="Is the APY guaranteed?">
    No. The APY fluctuates based on the protocol's trading volume and revenue. Higher trading activity leads to higher APY, while lower activity leads to lower APY.
  </Accordion>
</AccordionGroup>