To start staking, all you need to do is deposit your LOAN token to the Liquid Loans staking contract. Once done you will start earning a pro rata share of the borrowing and redemption fees in USDL and PLS.
Your LOAN stake will earn a share of the fees equal to your share of the total LOAN staked, at the instant the fee occurred.
No, you can withdraw your staked funds at any time.
You can only stake LOAN tokens. PLS is used as collateral to secure your USDL loan.
No, staked LOAN tokens are not used to backstop the Liquid Loans system, and are not used for governance as there is no Liquid Loans governance.