arNFT staking generates yield by supplying the underlying coverage to arCore Smart Cover System, where it is pooled and brokered to customers at a premium.
Note: Staked arNFT do not provide coverage to the user who staked them. If you want to be covered yourself, please just hold the arNFT and do not stake. Alternatively, you can purchase coverage from arCore Smart Cover System.
If you haven't bought an arNFT you can buy one at https://armor.fi/mint. Note that only the arNFTs that show when the [x] Gift checkbox is checked are eligible for Armor staking rewards.
Navigate to the Stake arNFT tab and scroll down to Unstaked arNFT table.
A transaction to approve the transfer will pop-up on metamask, and then a second transaction to execute the stake will pop-up. Approve both transactions to stake.
Once staked, you will begin to see the rewards your NFTs are accruing in the "Rewards" section below. You may claim these rewards at any time by clicking the "claim" button.
Staked arNFTs can only be withdrawn if both the following conditions are met:
Condition 1: There is enough unused cover available in the specific protocol's coverage pool in arCore Smart Cover System;
Condition 2: There is no claim on the arNFT.
If both conditions are met, then you may request to withdraw your arNFTs at any time, which starts the 7-day waiting period after which the arNFT is unstaked and can be withdrawn. To do this, simply click the "Withdraw" button in the "Staked arNFT" table.
7 day waiting period before unstaking: This waiting period has been designed specifically to prevent users from unstaking in response to a hack. Please note that during this 7 day waiting period, the arNFT is still considered staked and is treated the same as any other staked arNFT. Both conditions 1 and 2 above must be met throughout this period to enable withdrawal.
Example: Consider a user requested to withdraw their arNFT, and is on day 6 of the 7 day waiting period. At this point a claim is made, the unstaking/withdrawal process is frozen and user will not be able to withdraw their arNFT until the claim is resolved. If the claim is paid out, the user's arNFT is burned. If the claim is refused, the user can withdraw their arNFT after waiting the remainder of their waiting period.
Once staked, the arNFT coverage is allocated to Armor protocol, which can make claims on these arNFTs. If a claim is successfully made, the staked arNFT will be burned. Excess funds are directed to the Armor Treasury Reserve. The user will continue to earn staking rewards for the duration the arNFT would have been valid.
Only arNFTs for the protocols listed here are accepted for rewards.