How does staking work?

This page provides an overview of how users can stake their Ethlizards.

Staking allows a user to lock their Ethlizards Genesis V1 and V2 NFTs in exchange for rewards on the investments made via the Ethlizards investment DAO. The official staking site can be found here: https://staking.ethlizards.io/

Staking & Un-Staking

Stakers can deposit their Ethlizard NFT and receive a Locked Lizard (LLZ) to represent their deposit. Once deposited, an Ethlizard cannot be withdrawn for 90 days, and the user can claim rewards from council deposits.

After the lockup period has ended, a user will be able to un-stake their deposited Ethlizard at any time. To initiate an un-stake, they must use their original staker's address and hold their corresponding LLZ. When un-staked, a user will lose access to all their pending rewards and lose access to future rewards (unless they re-stake). It's essential for users to claim their rewards before un-staking, which is reflected in the staking interfaces.

We encourage users to deposit their NFTs via a cold wallet address, as claims and withdrawals will all be made via the depositor's address. The received LLZ is retractable and allows the original depositor to always recall the NFT back to their address. This means, as long as you have access to the wallet you originally staked with, you will be able to re-claim your LLZ back.

Ethlizards is not responsible for phished wallets.

Rewards Distribution

Revenue distributions will occur according to the Investment Council’s decisions based on token liquidations. Once over 50,000 USDC has been deposited into the contract, a new "pool" will be created, allowing users to claim their rewards.

Claiming

A user can only claim rewards when staked, and will only receive a share of rewards deposited after they have been staked. In order to claim rewards, the user will also need to engage in at least one on-chain governance vote/action with their Ethlizards, to ensure active participation.

Claims are done via a dynamic pool system. Each time a reset occurs and a sufficient amount of rewards have been deposited into the contract, a pool will be created and a user will be able to claim rewards assuming they've been staked prior. Users will receive different rewards per pool and will have to claim rewards separately per pool.

See this link for the original LIP passed the staking proposal.