2. LDN
LDN is the base governance token of the Lydian protocol. It represents a share of the total Treasury and is your Guild Membership card.
Your weight in governance votes is also determined by the amount of Lydian tokens you have in your wallet, whether its LDN, sLDN or wLDN.
3. sLDN (staked LDN)
Staking allows you to earn more LDN passively via auto-compounding.
By staking your LDN with Lydian, you receive sLDN(staked LDN) in return at a 1:1 ratio. After you receive your sLDN, your can claim your sLDN rewards that have been growing based on their respective APY.
4. wLDN (wrapped LDN)
Wrapping of LDN enables the sLDN token to be used on other protocols and in the future might even go off-chain.
Trade your wLDN and USDA for wLDN-USDA LP tokens on Arkadiko to buy bonds on Lydian.
When buying bonds, additional LDN tokens are created by the bonding mechanism which enables the protocol to own wLDN-USDA LP tokens.
In the future, decisions will be made on which other tokens should be accepted for bonds and thus become part of Lydian’s treasury.
Bonds give you the opportunity to buy LDN from the protocol at a discount.
- You pay for the LDN with liquidity. This helps the protocol accumulate liquidity shares. Instead of using USDA to bond, you use wLDN-USDA LP (or other accepted assets in the future). But it is in fact the same as any regular trade; you give the protocol an asset (LP), and in return you get another asset (LDN).
- The demand for bonds dictates the discount you get. The market is still relevant because the LP share you pay with gets more or less valuable, but it’s not what actually drives what you get. Instead, the bond discount goes up when there are more bonds, and goes down when there are less bonds.
- Your committed LP is locked once you bond. This is important to note. When you make the trade, you have made the trade. Think of it as buying LDN in exchange for your LP token.
5. How to stake
- Go to the Lydian dApp.
- Select the “Stake” tab in the Navigation menu.
- Enter the amount of LDN that you would like to stake in the input field. If you would like to stake all your LDN, press the “MAX” button and the input field will be populated with your total available LDN balance.
- Click “Stake” and sign the transaction.
- After you “Confirm” transaction has been processed and signed successfully you have staked your LDN!
6. How to bond
- Go to the Lydian dApp
- Select the “Bonds” tab in the Navigation menu.
- Enter the amount of LP tokens that you would like to bond in the input field and determine your slippage. Review how much LDN tokens you will get in return. Based on the current ROI (discount or premium) on the actual LDN price.
7. To Conclude
In the end, it is up to you which part of your LDN you want to stake and which part you want to provide as liquidity to the protocol.
We would advise to focus on what you know and pay attention to what you’re getting in return of your trades, and then decide for yourself what the best way forward is.
As always, the Lydian Discord is a great place for an open discussion with other Guild Members, who are faced with the same conundrums to get the best rewards.
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