Liquid Staking exists so you can use your assets to access locked liquidity. When you liquid stake, you receive liquid staking tokens (LSTs) in exchange for staking your assets. This LST represents your original deposit and a yield on top of that for as long as you keep your assets staked. In the case of Sceptre, you receive sFLR in exchange for the FLR or wFLR tokens you stake and the yield they generate in the form of FlareDrops and staking/ delegation rewards.
In this blog post, we will guide you through the unstaking process and tell you exactly what happens after you decide to unstake from Sceptre. No, you won’t be getting a message telling you “we are sorry to see you go” and asking you for your feedback on the experience (although we’d love to hear it). Instead, we want you to be informed on every step of the Sceptre liquid staking process.
What happens when I unstake from Sceptre?
To unstake, return your sFLR to Sceptre. After a 2-week (14.5-day) unstaking period, you will receive your original stake in the form of wFLR. You also receive proportional rewards accrued during the staking period minus a 10% fee on the rewards.
Hold up, why do I have to wait 2 weeks to get my tokens back?
FlareDrops on Flare’s P-Chain are distributed after each staking period ends, with each staking period lasting for 2 weeks. For this reason, there is a 14-and-a-half-day unstaking cooldown period. The remaining half day ensures your funds are available when you claim them.
That’s a long time. What if I don’t have 2 weeks?
If you feel like 2 weeks is too long, there are alternatives like swapping sFLR for FLR on a DEX (depending on the availability of pools) or supplying it as collateral on a market that takes sFLR, like Kinect, and borrowing against it. As the Flare network develops, alternative DeFi platforms will surely develop.
What happens to my stake during those 2 weeks?
During the 2-week cooldown period, your stake will keep accruing rewards, which you will receive once that period is over.
We promised we weren’t having a “sorry to see you go” message, but we hope you keep your FLR and wFLR staked with Sceptre for a long time. Should you not, we hope this article helped clear out any doubts you had. If you still have any questions, feel free to reach out through our Telegram channel.