Stake Position Lifecycle
Stake position lifecycle
Accounts can call
initialStake(amount, period, receiver)to stake USDC into Sherlock. The lockup
periodis in seconds but periods need to be whitelisted by governance. At the initial deployment it will be possible to stake for 3, 6 or 12 months.
periodthe position can be transferred using the ERC721 interface. But no Sherlock specific action can be executed during the lockup
After the lockup period expires the following situations can happen
- Owner calls
ownerRestake(id, period)to restake all USDC for new
- Owner calls
redeemNFT(id)to redeem all USDC and burn the NFT
- If the owner doesn't execute either one of these actions in 2 weeks, any account is able to call
arbRestake(id)to restake the position.
SHER rewards will be send to the owner on the first action after every lockup period
After 2 weeks without action on an unlocked position arbs can come in to
arbRestake(id), 20% of the underlying USDC amount (principal + yield) is at risk for the owner of the position. The reward rate moves from 0% of the underlying USDC amount to 20% over the course of 1 week.
The position is restaked for 26 weeks after this call has been executed. At the end of 26 weeks the cycle described in 'after lockup' starts again.
All owed SHER rewards (from the previous lockup) are still transferred to the owner on