What is Staking?

Staking is the primary value accrual strategy of HunnyDAO. Stakers stake their LOVE on HunnyDAO to earn rebase rewards. The rebase rewards come from the proceeds from bond sales, and can vary based on the number of LOVE 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 LOVE translates into a constantly falling cost basis converging on zero. This means even if the market price of LOVE drops below your initial purchase price, given a long enough staking period, the increase in your staked LOVE balance should eventually outpace the fall in price.

When you stake, you lock LOVE and receive an equal amount of KISS. Your KISS balance rebases up automatically at the end of every interlude. KISS is transferable and therefore composable with other DeFi protocols.

When you unstake, you burn KISS and receive an equal amount of LOVE. 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 LOVE tokens (if any) will continue to receive rebase rewards.

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