What is reSDL? Staking and Locking SDL
reSDL (Reward Escrowed SDL) is what you receive when you stake SDL, the stake.link governance token, in the SDLPool. Your position is minted as an NFT. reSDL gives you three things:
- Protocol rewards. reSDL holders earn a share of the fees from every stake.link liquid staking token, including
stLINK,stPOLandstESP. Rewards are paid in those tokens, not in new SDL. - Priority staking. Deposits into the Priority Pool from wallets that hold reSDL are staked before others.
- Governance. reSDL holders vote on proposals (SLURPs) and elect community members to the Governance Council.
How locking boosts reSDL
Section titled “How locking boosts reSDL”You can stake SDL without a lock and receive reSDL at 1:1. If you lock your SDL, you get more reSDL for the same SDL, which increases your share of rewards and your voting weight:
| Lock duration | reSDL per SDL |
|---|---|
| No lock | 1x |
| 12 months | 3x |
| 24 months | 5x |
| 36 months | 7x |
| 48 months | 9x |
The boost is calculated by the LinearBoostController. Locking only increases your reSDL balance. It never creates new SDL.
Withdrawing locked SDL
Section titled “Withdrawing locked SDL”- Unlocked positions can be withdrawn at any time.
- Locked positions keep their full boost for as long as you leave them, even past the original lock duration. To exit:
- After at least half of the lock duration has passed, click Initiate Withdraw.
- Your boost drops to zero and an unlock period starts. It always lasts half of the original lock duration.
- When the unlock period ends, burn the reSDL NFT to get your SDL back.
For example, with a 24-month lock you can initiate withdrawal after 12 months and receive your SDL 12 months later.
Managing reSDL NFTs
Section titled “Managing reSDL NFTs”- Transfer or sell. reSDL NFTs are standard ERC-721 tokens. You can transfer them, even while locked, or sell them on NFT marketplaces. The underlying SDL and its future rewards move with the NFT. Rewards earned before the transfer stay claimable by the previous owner. If you transfer reSDL out of a wallet that has LINK in the Priority Pool, that wallet loses its priority.
- Add SDL. You can add SDL to an existing position. If the position is locked, adding SDL resets its lock timer.
- No merging or splitting. Each NFT is a separate position. Stake again to create a new one.
Where SDL comes from
Section titled “Where SDL comes from”SDL has a fixed supply of 100,000,000 tokens. You can buy it on the SDL/LINK Uniswap V3 pool. The FAQ lists the initial distribution.