Staking

What is Staking

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

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

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