Staking

What is Staking?

Crypstarter DAB's key value accrual approach is staking. Stakers can receive rebase incentives by staking their CST on the Crypstarter DAB website. The rebase incentives are derived from bond sales proceeds and can vary according on the quantity of CST staked in the protocol and the reward rate established by monetary policy.

Staking is a long-term, passive approach. The rise in your CST stake translates into a steadily lowering cost base that eventually converges on zero. This implies that even if the market price of CST falls below your initial purchase price, if you stake for a long enough length of time, the rise in your staked CST balance should ultimately overtake the price decline.

When you stake, you lock CST and receive an equivalent amount of CSTS in exchange. At the conclusion of each epoch, your CSTS balance is automatically rebased. Because CSTS is transferrable, it may be combined with other DeFi protocols. When you unstake, you burn CSTS and obtain CST in exchange.

Unstaking implies that the user will miss out on the next rebase payout. It should be noted that the forfeited reward only applies to the amount that was not staked; any remaining staked CST (if any) will continue to earn rebase incentives.