Staking

What is Staking?

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