Staking

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

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