The $LAB rewards obtained from lending and borrowing require a 90-day vesting period to claim in full.

Here's how the vesting process works:

Start Vesting: Users can initiate the vesting process by choosing to start it. At this point, the LAB rewards accumulated in the pending rewards will begin to vest. Importantly, vesting does not affect the user's xLAB balance.

Early Exit (Penalty Claim): During the vesting period, users have the option to exit early and claim their rewards. However, a penalty is applied based on the remaining vesting period, ranging from 10% to 90% of the original amount. LAB tokens collected as penalties are periodically burned.

Completion of Vesting: After the 90-day vesting period is completed, users can perform a withdrawal and receive 100% of the originally vested amount.

This vesting mechanism ensures that users receive their $LAB rewards over time, and it provides the flexibility to exit early with penalties if needed.

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