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Staking

What is Staking?

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