# Staked BRLA
### What is stkBRLA?
BRLA holders can stake BRLA to participate in TrueFi governance ; TBA as Tally is decommissioning (previously [Tally](https://www.tally.xyz/gov/truefi/) and [Snapshot](https://snapshot.org/#/truefi-dao.eth) were used).
In return for staking BRLA, the user receives stkBRLA tokens.
Stakers vote to approve/reject loan applications, and in return can potentially earn additional BRLA and protocol fees. Stakers risk losing a portion of their TRU staked in the event of default on loans in Brila DAO pools.
| Contract | Address |
|---|
| stkBRLA | TBA |
### How do I stake?
On the [Stake](https://app.truefi.io/stake) page, click on “Stake BRLA”, input the amount of BRLA you wish to stake and complete the transaction on the connected wallet. Users staking for the first time are required to [approve](https://metamask.zendesk.com/hc/en-us/articles/6174898326683-What-is-a-token-approval-) a token allowance for the stkBRLA contract first.
### What is the incentive for staking?
Staking BRLA on the protocol enables stakers to govern the protocol and manage key smart contracts.
Stakers may receive BRLA rewards as incentive for staking, but as of May 2023 stkBRLA rewards have also been turned off. For the latest BRLA distribution per day, one can check the parameters `totalAmount` and `duration` in the stkBRLA distributor smart contract.
Visit the [etherscan link](https://etherscan.io/address/0xecfD4F2C07EABdb7b592308732B59713728A957F#readProxyContract) below, click on Contract, then click on Read as Proxy. You will find these two parameters among the list of other parameters. The duration is in seconds.
`BRLA distribution per day = (totalAmount/10^8) / (duration/(24*3600))`
| Contract | Address |
|---|
| stkBRLA distributor | TBA |
### What is the risk of staking?
Historically, BRLA stakers acted as a risk management system for the Brila [legacy-dao-pools](https://docs.brila.finance/brila-protocol/other-concepts/legacy-dao-pools "mention").
In the event of a default in one of the DAO pools ("Brila Lending Pool"), a certain percentage of the staked BRLA will be liquidated and transferred to the Brila Lending Pool. The maximum percentage of staked BRLA that can be liquidated and transferred to the affected Brila Lending Pool per default is the *Maximum Liquidation Rate*. Therefore, in the event a loan provided by a Brila lending pool defaults, Stakers can lose up to the Maximum Liquidation Rate of their BRLA staked.
For example, let’s consider a scenario when a loan of principal amount 1,000,000 USDT defaults where the stkBRLA contract has 500,000 BRLA staked and a *Maximum Liquidation Rate* of 10%. The maximum amount of BRLA that would be liquidated is (500,000 x 10%) 50,000 BRLA.
The value of the loan defaulting may be less than the value of the maximum BRLA that can be liquidated. In such cases the market value of BRLA that would be liquidated will be equal to the loan amount and the rate of BRLA liquidation would be less than the maximum liquidation rate.
For the latest *Maximum Liquidation Rate*, you can check the parameter `fetchMaxShare` in the Liquidator smart contract below:
| Contract | Address |
|---|
| Contract | Address |
| Liquidator (proxy) | TBA |
Visit the etherscan link to the smart contract, click on Contract, then click on Read as Proxy. You will find the parameter `fetchMaxShare` among the list of other parameters.
`Max liquidation rate = (fetchMaxShare / 10^2) %`
### How can I unstake or withdraw my stake?
Once BRLA is staked on the protocol, it is locked into the protocol. You will need to initiate cooldown to unstake your staked BRLA.
During the cooldown period you cannot unstake or withdraw your staked tokens. Once the cooldown period is over you will have a window of time, called the `unstakePeriodDuration` in the stkBRLA smart contract to unstake or withdraw the staked tokens. If you do not unstake during this window your staked tokens will be staked back into the protocol and you will be required to re-initiate a new cooldown period.
During the unstaking window, you can visit the [Stake](https://legacy.truefi.io/stake) page and click on the “Unstake” button present over your Staked BRLA amount.
### What is the cooldown period and window to unstake?
The cooldown period has been added to prevent any kind of gamification which might be possible by staking for a very short period of time. For example, without a cooldown period Stakers could stake on the protocol to earn the protocol fee and then immediately unstake. This might result in some Stakers earning a return which is disproportionate to the amount of risk they are helping mitigate. Staked BRLA cannot be unstaked from the protocol during the cooldown period.
For the latest cooldown period and the unstaking window, you can check cooldownTime and `unstakePeriodDuration` in the stkBRLA smart contract. Visit the [etherscan link](https://etherscan.io/address/0x23696914Ca9737466D8553a2d619948f548Ee424#readProxyContract) to the smart contract, click on Contract, then click on Read as Proxy. You will find both these parameters cooldownTime and `unstakePeriodDuration` mentioned in seconds. To change this to days you can use the following formula.
`Cooldown time in days = cooldownTime / (24 x 60 x 60)`
### Can I stake more BRLA during the cooldown period?
Yes, you can stake more BRLA during the cooldown period. Staking more BRLA, with the same wallet, during the cooldown period will increase the cooldown period. The cooldown period timer will be reset to the maximum cooldown period if you stake any additional BRLA.
### How do I claim my staking rewards?
On the [Stake page](https://app.truefi.io/stake), you can regularly check your claimable rewards. Click on the 'Claim' button and complete the transaction in your wallet to claim them.
### How are loan requests approved?
Information on approving loans in the [legacy-dao-pools](https://docs.brila.finance/brila-protocol/other-concepts/legacy-dao-pools "mention") can be found in the [Loan approval process section](https://docs.brila.finance/brila-protocol/other-concepts/legacy-dao-pools/loan-approval-process) of the FAQs.
### Can I transfer stkBRLA?
There are no restrictions on when stkBRLA holders can transfer the token to other wallet addresses. Users can transfer stkBRLA from their wallet when they are in a cooldown period and even if there are unclaimed rewards associated with their wallet.
Transferring stkBRLA does not change the cooldown status of the associated wallet. The cooldown process is independent of the token and it only depends on the wallet address.
If a user is currently in the unstake window after initiating cooldown, they can only unstake their original cooldown amount and not any additional amount of stkBRLA they received after initiating the cooldown. The user would have to initiate a new cooldown on the additional stkBRLA amount.
### Accruing stkBRLA Rewards
Rewards for staking are linked to the wallet address. If a user has claimable rewards and decides to transfer their stkBRLA without claiming the rewards, they can always claim the rewards later. Rewards (BRLA or Brila LP tokens) associated with staking are not transferred when stkBRLA is transferred and does not depend on whether the staker is in a cooldown period or unstake window. The receiver of stkBRLA starts accruing rewards based on when they received the tokens.
### stkBRLA Delegation and Governance
Transferring stkBRLA does change the voting power for snapshot voting and on-chain governance by the exact amount of stkBRLA which has been transferred.
Receivers of stkBRLA will be required to delegate the balance to themselves upon receiving the tokens.