Snowbank DAO

What is Staking

Staking is the primary value accrual strategy of Snowbank. Stakers stake their SB tokens on Snowbank Website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of SB 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 SB translates into a constantly falling cost basis converging on zero. This means even if the market price of SB drops below your initial purchase price, given a long enough staking period, the increase in your staked SB balance should eventually outpace the fall in price.
When you stake, you lock SB and receive an equal amount of sSB. Your sSB balance rebases up automatically at the end of every epoch. sSB is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sSB and receive an equal amount of SB 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 SB (if any) will continue to receive rebase rewards.
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