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:
Governance Power (vote weight scales with lock duration)
Protocol Revenue Share (distributed through buybacks to veLDY holders)
Operational Advantages inside the protocol
How Staking Works
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:
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
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.
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
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.
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