What is Staking?¶
Staking is the primary value accrual strategy of TiPiDao.
Stakers stake their TPD on the TiPiDao website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of TPD staked in the protocol and the reward rate set by monetary policy.
Staking is a passive, long-term strategy.
The increase in your stake of TPD translates into a constantly falling cost basis converging on zero. This means even if the market price of TPD drops below your initial purchase price, given a long enough staking period, the increase in your staked TPD balance should eventually outpace the fall in price.
When you stake, you lock TPD and receive an equal amount of sTPD.
Your sTPD balance rebases up automatically at the end of every epoch. sTPD is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sTPD and receive an equal amount of TPD.
Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked TPD (if any) will continue to receive rebase rewards.