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