> For the complete documentation index, see [llms.txt](https://hyperlendnotstaging.gitbook.io/notstaging/DDsbEDiCKODk1pFG9mPe/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperlendnotstaging.gitbook.io/notstaging/DDsbEDiCKODk1pFG9mPe/protocol-architecture/staking.md).

# Staking

## Staking Mechanism: HPL to sHPL

Users stake their **HPL** tokens and receive **sHPL** (staked HPL) on the HyperEVM. This system is designed for maximum liquidity, meaning there is no rigid lock-up period and users are free to unstake or swap their sHPL back to HPL at any time. Beyond simple possession, holding sHPL provides immediate utility by automatically qualifying the user for the Rebate Program.

## The Rebate Program

#### How it works:

* **Accrual:** A percentage of your borrow costs is calculated as a rebate every day.
* **Accumulation:** These rebates stack over time.
* **Claiming:** The **"Claim"** button becomes visible once your accumulated rebate reaches at least **$0.10**.
* **Distribution:** Rebates are claimable once a week.

#### Rebate Formula

The rebate percentage is determined by a combination of your borrowing activity and your staking volume.

$$
\text{Rebate %} = \min \left( \text{MAX DISCOUNT}, \alpha \cdot \left( \frac{\text{borrowed amount}}{\text{Bmax}} \right)^{\gamma} + \beta \cdot \left( \frac{S \cdot L\_t}{\text{Smax}} \right)^{\gamma} \right)
$$

<table data-header-hidden><thead><tr><th width="139.5"></th><th width="119"></th><th></th></tr></thead><tbody><tr><td>Parameters</td><td>Value</td><td>Description</td></tr><tr><td>α</td><td>0.6</td><td>Controls borrow weight, concave</td></tr><tr><td>β</td><td>0.4</td><td>Controls staking weight, concave and additive to borrow</td></tr><tr><td>γ</td><td>0.6</td><td>Controlos diminishing returns on staking and borrow power</td></tr><tr><td>Bmax</td><td>100M</td><td>Maximum borrow value</td></tr><tr><td>Smax</td><td>7.2M</td><td>Maximum staking power (0.72% FDV staked)</td></tr><tr><td>Max Rebate</td><td>80%</td><td>Max discount (%)</td></tr></tbody></table>

### Staking Tiers

While the rebate formula is continuous (meaning every single HPL staked increases your return), ourm UI categorizes users into **six tiers** to provide a clear sense of progression.

| Tier       | Required Staked HPL |
| ---------- | ------------------- |
| Unranked   | 0                   |
| Tier One   | 75,000              |
| Tier Two   | 300,000             |
| Tier Three | 750,000             |
| Tier Four  | 1,500,000           |
| Tier Five  | 3,000,000           |
| Tier Six   | 7,200,000           |

{% hint style="info" %}
You can use our [**Tier Saving Projection**](https://app.hyperlend.finance/staking) tool to see and play with different scenarios to visualize how your staking and borrowing levels impact your total savings.
{% endhint %}


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