Un-staking is simply removing your loaned assets from the pool and getting them back into your wallet.

Navigate to the “Lend & Earn” tab. Click on “Withdraw” instead of “Deposit” at the top. You’ll see the same interface as with depositing assets, per the image below:

Enter the amount of assets you’d like to remove from the pool. You can remove both property tokens and USDC in the same transaction, or only remove assets from one side of the pool. Enter your desired quantity and proceed. You will receive an error if you try to withdraw more than you’ve put into the pool.

Preview the transaction amount by clicking "Preview Withdrawal". You’ll be able to see how many property tokens or USDC you’ll receive in exchange for turning in your LP tokens. Think of it as if you're bringing your receipt back to claim your deposit from a bank.

In order to help keep the liquidity pools balanced and prevent volatility, there may be a penalty to withdraw your assets. The liquidity pool is trying to get asset prices to be as close as it can to a property’s HouseCanary estimated price (this is the best estimate for how much the house is actually worth).

Depending on the amount of property tokens versus USDC in the pool, the pool may be considered to be imbalanced. This causes the market price to either be above or below the HouseCanary estimated value. If you try to withdraw assets from the side of the pool that’s already imbalanced, you’ll have to pay a penalty fee to withdraw your assets and make the pool even more imbalanced. This penalty fee is paid by letting you withdraw less than what you put in. As a result, you’ll often notice that during redemptions, LP tokens don’t always map 1:1 with the original loaned out assets.

Your penalty fee is not given to Lofty. Instead, it’s paid back as rewards via additional yield to the rest of the lenders who did not withdraw to unbalance the pool. The more your withdrawal would imbalance the pool, the higher the fees you’ll have to pay. This reward and penalty mechanism helps prevent mass liquidity exits in standard liquidity pools, which is one of their biggest drawbacks, and why we saw fit to use a different architecture.

In summary, this feature rewards those who are extremely patient and don’t intend to withdraw their assets frequently on a short-term basis.

Of course, the penalty will be displayed to you before you confirm the transaction.

Confirm the withdrawal if the results are acceptable to you and will see a success screen once the withdrawal goes through. Congrats! You’ve just loaned out your assets, earned some interest, then received your assets back. It's a completely new concept in the world of real estate ownership and investing.