Staking
Staking V2 is the upgraded staking module for the SUMR governance token. It extends SUMR utility beyond governance participation and introduces new economic alignment between long-term SUMR holders and the growth of the Lazy Summer Protocol.
Staking V2 replaces the previous Staking V1 module and introduces a lock-based system, dual reward streams, and simplified governance power mechanics designed to support the next phase of protocol expansion.
What is Staking V2?
Staking V2 allows SUMR holders to stake and optionally lock their positions to receive:
Governance power (with no voting power decay)
SUMR emissions (community incentives)
USDC-denominated vault rewards (from protocol revenue)
Stakers continue to participate in governance through direct voting or by delegating. Staking V2 unifies token utility around long-term protocol alignment, predictable governance power, and access to protocol-level rewards.
Key Improvements vs Staking V1
Staking V2 fundamentally changes how SUMR integrates with governance and protocol incentives.
1. Governance power without decay
In V1, voting inactivity reduced voting power over time. In V2, governance power is constant for the full duration of the stake or lock. Users can vote directly or delegate to those who curate ARKs, evaluate proposals, and uphold protocol standards.
2. Dual rewards (SUMR + USDC)
In V1, stakers earned only SUMR rewards. In V2, stakers may earn:
SUMR emissions – from tokens earmarked for community distribution (streamed)
USDC-denominated LV tokens – routed from protocol revenues generated by Lazy Vault deposit flows
These LV tokens automatically compound inside the Lazy Summer Protocol’s Base USDC LR Vault.
3. Lock-based multipliers
Stakers may optionally lock their SUMR stake for increased alignment and higher potential rewards. A longer lock grants a higher multiplier applied to SUMR and USDC rewards.
The formula used for the multiplier calculation is:
7e-16 * seconds^2 + 1
4. Lock buckets with capacity limits
Each lock duration has a fixed capacity. Once full, no additional SUMR can be locked in that bucket unless capacity is increased by governance.
Why Stake SUMR?
Staking SUMR in V2 serves three primary functions inside the protocol.
1. Participate in Governance
Staking SUMR grants governance power used to:
Onboard or offboard FLEETs/ARKs
Set protocol parameters
Allocate protocol revenue between lockers, growth incentives, and treasury
Hold contributors accountable
SUMR is the coordination layer for the protocol. Staking expresses alignment.
2. Earn SUMR Emissions
Stakers earn SUMR from community distribution schedules. Locking increases reward weight, enabling long-term holders to receive a proportionally larger share of SUMR emissions.
3. Receive Protocol Revenue (USDC)
A portion of Lazy Summer Protocol revenue (based on the revenue of strategy yields) is allocated to SUMR lockers.
Revenue is distributed as USDC-denominated LV tokens, which continue auto-compounding in the underlying vault strategy (USDC LR on Base). This ties SUMR staking returns directly to vault usage, strategy performance, and protocol adoption.
How Staking Works
Stake Creation
Users deposit SUMR into the staking module to create a position. Each position is independent and can have its own lock duration and reward multiplier.
Lock Durations
Available locks range from no lock to approximately 3 years.
Each lock defines:
A time commitment
A reward multiplier (applies to SUMR + USDC rewards)
A capacity limit (maximum SUMR allowed in that bucket)
Overview:
No Lock
1.0×
15.000.000
Flexible, no time commitment
14 Days - 3 Months
↑
15.000.000
Introductory commitment
3 Months - 6 Months
↑↑
35.000.000
Medium-term alignment
6 Months - 1 Year
↑↑↑
60.000.000
High alignment
1 Year - 2 Years
↑↑↑↑
100.000.000
Higher alignment
2 Years – 3 Years
7.26x
unlimited
Highest conviction and multiplier
Capacity Limits
Lock buckets close when capacity is reached. Users may:
Choose a different bucket
Split positions across multiple locks
Wait for governance-approved capacity increases
Rewards Accrual
Staking rewards accumulate continuously and include:
SUMR emissions – proportional to stake × multiplier
USDC LV tokens – proportional to stake × multiplier × protocol revenue
SUMR rewards can be claimed at any time; USDC rewards will be distributed on monthly basis.
Early Withdrawal Penalty
Users may exit a locked position early, but an early withdrawal penalty applies:
Maximum penalty: 20% of principal
Penalty decreases linearly as the lock approaches expiry
Designed to reward commitment while allowing flexibility if circumstances change
Penalties remain inside the staking module and increase yield to remaining lockers.
Governance Participation After Staking
Staking V2 resets all prior delegation. After staking or migrating from V1, users must re-delegate to the delegate of their choice.
Delegation determines:
Who exercises your voting power
Which delegate earns active participation rewards
How effectively governance decisions reflect your preferences
Delegation can be changed at any time.
Migrating from Staking V1
If you previously used Staking V1:
Unstake from V1
Claim any unclaimed SUMR
Restake using Staking V2
Optionally lock to select your multiplier
Re-delegate to a delegate of your choice
Migration is mandatory before earning rewards under Staking V2.
Staking and Protocol Alignment
Staking V2 integrates SUMR more tightly with the Lazy Summer Protocol by:
Introducing stake-based alignment (locks + multipliers)
Removing governance decay
Routing protocol revenue directly to lockers
Strengthening delegation incentives
Aligning SUMR value with vault adoption and long-term strategy performance
This establishes SUMR as an economically productive governance asset designed for protocol-scale growth.
Getting Started
You can stake SUMR through the Summer app:
https://summer.fi/earn/staking
Typical steps:
Stake SUMR
Select lock duration
Review projected rewards
Submit stake
Delegate voting power
Once staked, rewards begin accruing automatically.
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