Maximizing Returns with Staking
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.
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.
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.
Your sTEA balance rebases up automatically at the end of every epoch. sTEA is transferable and therefore composable with other DeFi protocols.
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.