LockStake Engine (Seal Engine)

LockStake Engine (Seal Engine)

Important Note:

An exit fee is applied to all sealed MKR (deposits into the LockStake Engine) when you unseal (withdraw) them from the LockStake Engine. You cannot transfer the locked MKR or the open vault position in any way—even to another address you control—without first unsealing and paying the exit fee.

To prevent unintended exit fees from internal transfers, users should only deposit MKR into the LockStake Engine from an address where they intend to hold the position long-term.

The LockStake Engine allows users to deposit MKR and open a vault position, which can be used for one or more of the following purposes:

• Borrow USDS using the deposited MKR as collateral.

• Stake the entire MKR deposit in the vault to earn rewards from any one of multiple available options.

• Delegate the voting power of the entire MKR deposit in the vault to a governance delegate. Users can open one or more vaults from a single address to gain greater flexibility in borrowing, staking, and delegating using the MKR they hold.