Receipt NFTs

Each staking position must have a lockup period (6 months, 12 months, etc.) associated with it. Because a staking position can be initiated at any time, each staking position will likely have a unique lockup end date. Due to this phenomenon, staking positions are not fungible. Therefore, staking positions at Sherlock are represented by NFTs.

For every staking position, an NFT is minted with a unique ID. Once the lockup period ends, the NFT can be redeemed to either unstake or restake the position. On unstake, both SHER rewards and USDC principal/rewards are transferred to the owner of the NFT. On restake, the SHER rewards are transferred to the owner of the NFT and the USDC amount is restaked for the new desired lockup period.