> For the complete documentation index, see [llms.txt](https://docs.lendsprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lendsprotocol.com/earn-with-lends/sleusd-staking.md). # sleUSD Staking sleUSD is the receipt token for staked leUSD. By holding sleUSD, you participate in revenue earned by the protocol instead of leaving leUSD idle. Your sleUSD balance stays the same while you are staked. Earnings appear as an increase in the amount of leUSD that each sleUSD share can redeem. ## Where the Return Comes From sleUSD is funded by realized revenue, including: * stability fees paid by leUSD borrowers * revenue generated during liquidations * realized yield on USDG reserves deployed to the configured external lending vault * other revenue explicitly routed to the staking vault This is usage-based yield. If protocol revenue is low, sleUSD earnings can be lower than the displayed target. The protocol does not mint unbacked leUSD merely to make up the difference, keeping the stablecoin pegged 1:1 to USDG. ## Target APR The target is 6% APR. This target controls how realized revenue is divided between sleUSD stakers and protocol revenue. Actual return depends on realized revenue, the total leUSD staked, timing of harvests and vesting, protocol losses, and how long you remain in the vault. Excess APR above the target is considered to be protocol revenue, and flows into $LENDS token using buybacks. ## Dynamic Staking Capacity New stakes are limited by the amount of annual protocol revenue that can reasonably support the configured target APR. The cap is recalculated from current on-chain state every time a user stakes. Projected annual revenue includes: * borrower debt multiplied by the configured stability-fee APR * all PSM USDG backing, whether idle or deployed, multiplied by a conservative configured Morpho APR assumption The calculation then reserves the expected insurance contribution while the insurance fund is below its target. The remaining projected revenue is divided by the 6% target APR: `staking capacity = projected net annual staker revenue / target APR` For example, 60,000 leUSD of projected net annual revenue can support a 1,000,000 leUSD pool at a 6% target. If the pool already contains 800,000 leUSD, the free room for other participants is 200,000 leUSD. ## How the Share Value Grows Suppose the staking vault holds 10,000 leUSD against 10,000 sleUSD shares. Each share represents 1.00 leUSD. If 500 leUSD of revenue is distributed and fully vests, the vault holds 10,500 leUSD against the same 10,000 shares. Each share then represents 1.05 leUSD. Revenue vests gradually (configured over seven days) rather than being credited in one instant. This smooths the effect of a harvest across entry and exit activity. ## How to Stake 1. Acquire leUSD by borrowing it or converting USDG through the PSM. 2. Open **Dashboard** and choose **Stake**. 3. Enter the amount of leUSD that you want to stake. 4. Review pool assets, dynamic capacity, available room, share value, target APR, and the transaction preview. 5. Approve leUSD and confirm the stake. 6. Receive sleUSD shares in your wallet. The app calculates shares from the current vault value. A later depositor does not receive a free claim on revenue that was already reflected in the entry price, keeping the protocol fair and safe from potential bad actors. ## How to Unstake Unstaking is a scheduled two-step process: 1. Choose **Unstake** and submit a request. The corresponding sleUSD shares are burned from your wallet while the request is pending. 2. Wait through the configured seven-day cooldown. 3. Complete the request during the following three-day claim window to receive leUSD. If you miss the claim window, the expired request can be cancelled and the original sleUSD shares are returned. You must then start a new cooldown to exit. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.lendsprotocol.com/earn-with-lends/sleusd-staking.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.