HLQT Staking

Introduction to HLQT Staking

Staking is a fundamental aspect of the HLiquity protocol, allowing HLQT token holders to contribute to the protocol's security and earn rewards. By staking HLQT, users can earn a pro-rata share of the borrowing and redemption fees generated by the protocol.

How HLQT Staking Works

Users need to deposit their HLQT tokens into the HLiquity staking contract to start staking. Once the tokens are staked, users will begin earning a pro-rata share of the protocol's fee revenue. The earnings are directly proportional to the user's share of the total HLQT staked, based on the fees generated over time.

No Lock-Up Period

One of the key features of HLQT staking is the absence of a lock-up period. Users can withdraw their staked HLQT anytime, providing flexibility and control over their investments.

Staking and Governance

Staked HLQT tokens are not used to backstop the HLiquity system and are not used for governance as the HLiquity protocol operates without a governance mechanism, ensuring the protocol remains fully decentralized.

Staking HCHF

It's important to note that only HLQT tokens can be staked. HCHF, the stablecoin of the HLiquity protocol, cannot be staked. However, HCHF can be deposited into the Stability Pool to earn liquidation gains and HLQT rewards.


HLQT staking is a powerful tool for users to earn passive income while contributing to the security and stability of the HLiquity protocol. By understanding the mechanics of HLQT staking, users can make the most of their HLQT holdings and maximize their earnings.

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