Staking

What is Staking

Staking is the primary value accrual strategy of SecureDAO. Stakers stake their SCR tokens on the SecureDAO website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of SCR 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 SCR translates into a constantly falling cost basis converging on zero. This means even if the market price of SCR drops below your initial purchase price, given a long enough staking period, the increase in your staked SCR balance should eventually outpace the fall in price.

When you stake, you lock SCR and receive an equal amount of sSCR. Your sSCR balance rebases up automatically at the end of every epoch. sSCR is transferable and therefore composable with other DeFi protocols.

When you unstake, you burn sSCR and receive an equal amount of SCR tokens. 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 SCR (if any) will continue to receive rebase rewards.