Staking Benefits (utility)

Staking LDY converts the token into veLDY, a non-transferable governance and yield-bearing position represented as an on-chain veNFT. This design aligns economic participation with long-term commitment to the protocol.

When you stake LDY, you receive:

1. Governance Power (vote weight scales with lock duration)

2. Protocol Revenue Share (distributed through buybacks to veLDY holders)

3. Operational Advantages inside the protocol

---

How Staking Works

Input	Output	Meaning
LDY	Locked for a chosen duration	You choose how long you commit your tokens
veNFT (veLDY)	Non-transferable	Represents your staking position and voting power
Boosted Rewards	Scales with lock duration	Longer lock → higher yield share + more influence

What Stakers Receive

1. Share of Protocol Revenue (Real Yield)

Ledgity generates yield from its RWA strategy. A portion of performance fees is used to:

• Buy LDY on the open market

• Distribute it to veLDY holders

This means:

More TVL → More yield generated → More buyback → Higher rewards for stakers.

This is value capture from real economic activity, not emissions.

---

2. Governance Rights (veLDY = Voting Power)

Stakers decide on:

Decision Area	Examples
Protocol Parameters	Performance fee split, liquidity buffer ratios
Vault Listings	Which RWA strategies or new vaults are enabled
Treasury Allocation	Partner incentives, liquidity support, grants
Council Elections	Who executes governance decisions

Stakers are the DAO. The Council executes, but does not override staker votes.

---

3. Withdrawal Priority & Fee Reductions

Benefit	Description
Priority Withdrawals	High veLDY scores receive faster exit processing.
Reduced or 0% Withdrawal Fee	veLDY stakers unlock reduced protocol fees.
Preferred Liquidity Access	Institutional stakers may schedule redemptions in advance.

This ensures that aligned, long-term participants receive smoother liquidity access.

---

4. Access to Boosted Vaults

Some yield vaults offer boosted APY for veLDY stakers.

Vault Type	Requirement	Benefit
L-Boost Vaults	veLDY balance threshold	Enhanced APY
Leverage Vaults	veLDY lock duration threshold	Higher capital efficiency

This reinforces a flywheel between staking and vault participation.

---

5. Access to Holders-Only Privileges

Stakers gain:

• Early access to new vaults & product launches

• Access to governance discussions and research channels

• Invitations to Holder-Only IRL + digital events

• Optional institutional-grade reporting (for qualified entities)

---

In Summary

Staking LDY Gives You	Why It Matters
Revenue Share from real yield	Earn from actual economic activity, not emissions
Governance Power via veNFT	Shape how the protocol evolves
Withdrawal & fee advantages	Operational benefits over non-stakers
Boosted yields in advanced vaults	Higher efficiency for active users
Holder-gated perks & opportunities	Access and influence

Staking LDY is how users participate in ownership, decision-making, and value capture across Ledgity.