Staking is how Paradox DAO adds value to the protocol
Stakers earn rebase rewards by staking on the Paradox DAO website. These rebase rewards come from the bond sale proceeds, and can fluctuate based on the number of PRDX staked in the protocol.
<aside> 💰 Staking is available for PRDX accrued through market purchases or through minting bonds.
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Staking is long-term strategy, with no attention required
As your PRDX holding term extends, so do your PRDX holdings.
<aside> 💡 Even if the market price of PRDX falls below your purchase cost, given enough time staking, you will return to your original purchase cost, or exceed it.
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Staking locks your PRDX, and provides you with an equivalent amount of sPRDX
Your sPRDX balance rebases (increases) up at the end of every epoch automatically. sPRDX can be transferred so can be used on different DeFi protocols.
Staking is the primary value accrual strategy of Paradox DAO. Stakers stake their PRDX on Paradox DAO website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of PRDX 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 PRDX translates into a constantly falling cost basis converging on zero. This means even if the market price of PRDX drops below your initial purchase price, given a long enough staking period, the increase in your staked PRDX balance should eventually outpace the fall in price.
When you stake, you lock PRDX and receive an equal amount of sPRDX**.** Your sPRDX balance rebases up automatically at the end of every epoch. sPRDX is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sPRDX and receive an equal amount of PRDX. 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 PRDX (if any) will continue to receive rebase rewards.