When you stake through Homa protocol, you will receive a share representation of the underlying asset and staking yield earned in the form of L-Token. The L-Tokens records the staking rewards earned from Polkadot and Kusama nomination, and records punishment (e.g. DOT or KSM being slashed) in case of validator found to be misbehaving (e.g. not maintaining required uptime).

Homa protocol itself does not run any validators, hence can collectively choose the best validators for stakers. Earning staking reward is as simple as holding L-Token.

Note: When a user stakes and mints L-Token, cross-chain transaction fee would incur, staking rewards from the last era are deducted as the user starts to earn rewards from the next era.


Stakers have two options when redeeming the underlying asset

  1. Unstake normally: staker waits for a pre-defined unbounding period (29 days for Polkadot, 7 days and 6 hours for Kusama) before receiving the underlying asset and staking yield earned

  2. Unstake instantly: Homa protocol allows you to unstake instantly and receive early liquidity without waiting for the unbounding period. This is powered by a staking request queue and Acalaswap pool. A fee will be incurred when staker choose this option.

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