> ## Documentation Index
> Fetch the complete documentation index at: https://orderly.network/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# esORDER

> Learn how esORDER works, including staking benefits and vesting redemption schedules.

esORDER is the escrowed form of \$ORDER. Starting from epoch 7, trading rewards and market making rewards are paid in esORDER instead of liquid \$ORDER.

When you receive esORDER, you can either:

* **Stake it** -- esORDER staking provides the same benefits as staking \$ORDER (VALOR accrual, reward boosts).
* **Vest it** -- Convert esORDER back to liquid \$ORDER over a vesting period.

## Redemption (vesting)

Converting esORDER to \$ORDER requires a vesting period. The conversion ratio increases linearly with the vesting duration:

| Option          | Duration | Conversion rate |
| --------------- | -------- | --------------- |
| Minimum vesting | 15 days  | 50%             |
| Maximum vesting | 90 days  | 100%            |

The remaining 50% unlocks linearly between day 15 and day 90. You can claim once at any point during this window.

## Burn mechanics

When you redeem esORDER before the full 90-day vesting period, the unredeemed portion is permanently burned.

**Example:** Bob receives 100 esORDER and redeems after the minimum 15-day vesting. He receives 50 \$ORDER -- the other 50 \$ORDER is burned and removed from circulation.

## Why escrowed tokens?

* **Reduces sell pressure** -- Rewards vest over time rather than being immediately liquid, unlike typical farming tokens.
* **Compounding loop** -- esORDER can be staked to earn additional rewards, incentivizing users to keep tokens staked rather than vesting immediately.