Staking

What is Staking?

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

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

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