> For the complete documentation index, see [llms.txt](https://docs.teadao.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.teadao.money/products/tea-service/stake.md).

# Stake

**All you have to do is hold.**

*Staking is how profits are distributed equitably to the participants. By way of sTEA, everyone will get the same percentage profit for each epoch. Therefore, the act of rebasing also gives us the chance to compound yields without having to harvest or do anything apart from holding*.

Buying TEA and staking is **good** for you, **great** for TEA and **fantastic** for everyone in the community as a whole.

#### **Staking is the primary value accrual strategy of TeaDAO.**&#x20;

Stakers stake their TEA to earn rebase rewards. The rebase rewards come from the proceeds from bond sales. The rebase rewards come from the proceeds from bond sales, and can vary based on the number of TEA staked in the protocol and the reward rate set by monetary policy.

#### **Staking is a passive, long-term strategy.**&#x20;

Buying and staking can also be viewed as a method for passive investing in which you can **stake** and **forget**. You let your rewards and your initial staked amount **auto-compound**. Even when the market price falls below your purchase price, given a long enough time frame, the compounded rewards will outpace the drop in price.

#### **When you stake, you lock TEA and receive an equal amount of sTEA.**&#x20;

Your sTEA balance rebases up automatically at the end of every epoch. sTEA is transferable and therefore composable with other DeFi protocols.&#x20;

#### **When you unstake, you burn sTEA and receive an equal amount of TEA.**&#x20;

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 TEA (if any) will continue to receive rebase rewards.

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