Users who initiate staking will get the auto-cooldown feature. Users who initiated staking in the past were able select one of two cooldown options that will stay active till the end of the staking period:
Auto-cooldown: the protocol will automatically initiate a cooldown 7 days before expiry. In this case, the assets will be available immediately after the lock period, but they will not bring any more rewards post-expiry.
Stay staked at residual value (or manual cooldown): After the lock expires, the assets remain locked with the residual value of [0.01917*staked SPA tokens], and will continue to bring rewards to the user. If one day the user decides to take their assets out - they need to initiate the cooldown manually. After a one-week cooldown, the assets will become available.
Withdrawing from the protocol does not automatically claim all the SPA rewards. The users would be required to claim the rewards separately. In case the staking rewards are not distributed till that point of time, users can still claim the rewards and fee earnings accrued to them after they have withdrawn their staked SPA tokens.
When new users start staking, the auto-cooldown feature is applied. Auto-cooldown means that the veSPA balance decays to zero linearly and the stakers are able to withdraw their staked SPA balance at the end of their lockup period.
Stay Staked at Residual Value
Currently, this option is not available. If a user has chosen this option while staking in the past, their final veSPA balance was set at the residual veSPA balance. They would continue to earn all the staking rewards at this veSPA balance for as long as the protocol keeps distributing rewards. The residual veSPA balance is equivalent to the veSPA balance of a staking position that unlocks in 7 days.
Stakers can initiate cooldown when 7 days are left in lockup expiry or anytime after that. When the staker’s veSPA balance is set to the residual veSPA balance or when only 7 days are left in the lockup period, the staker can initiate a transaction to start a cooldown period. When the cooldown period is initiated the lockup expiry date is updated to a new date which would be 7 days from the date on which the cooldown was initiated.
Staker’s veSPA balance decays from the residual veSPA balance to zero during the cooldown period. At the end of the cooldown period, the staker can withdraw the SPA they had deposited. Stakers receive rewards during the cooldown period in proportion to their veSPA balance.
At the end of the cooldown period, the veSPA balance remains zero and the user doesn’t get any rewards. The users can unstake at any point in time after the cooldown period has ended.
On Day 0, user staked 1000 SPA for 365 days. Their veSPA balance will be 1000 veSPA
On the 358th day the user’s veSPA balance will be ~ 19.17 (1000x(7/365)). At this point of time, the user can initiate a cooldown period.
On the 365th day, if the user hasn’t yet initiated a cooldown period the user’s veSPA balance will be ~ 19.17. At this point the lockup has expired and the user can initiate a cooldown period.
On the 400th day, if the user hasn’t yet initiated a cooldown period the user’s veSPA balance will be ~ 19.17 and they can initiate a cooldown period. After the end of the cooldown period the user can unstake the 1000 SPA tokens.
Let’s say on the 400th day the user initiates a cooldown, they would be able to withdraw the tokens on the 407th day.