Staking
Introduction to Staking (Now Live!)
Staking allows you to earn BLKD passively via auto-compounding. By staking your BLKD on Blk Finance, you receive sBLKD (staked BLKD) in return at a 1:1 ratio. After that, your sBLKD balance will increase automatically on every epoch based on the current APY. Staking is the primary value accrual strategy of the DAO Stakers stake their BLKD tokens on Blk Finance to earn rewards. The rewards come from the proceed from bond sales, and can vary based on the number of BLKD staked in the protocol and the reward rate set by monetary policy. Additionally, rewards are supplemented through DAO investments and yield aggregator fees.
Staking is a passive, long-term strategy
The increase in your stake of BLKD translates into a constantly falling cost basis converging on zero. This means even if the market price of BLKD drops below your initial purchase price, given a long enough staking period, the increase in your staked TIME balance should eventually outpace the fall in price.
When you stake, you lock BLKD and receive an equal amount of sBLKD.
Your sBLKD balance rebases up automatically at the end of every epoch. sBLKD is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sBLKD and receive an equal amount of BLKD tokens
Un-staking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the un-staked amount; the remaining staked BLKD (if any) will continue to receive rebase rewards.
Stake your BLKD Tokens
Currently, the rewards distributed to BLKD stakers are based on the income generated by bond sales, LP fees generated through trading, and performance fees charged for all farming and banking strategies.
In the future this will expand to include successful DAO investments and other income subject to DAO approval.
Reading the Info
APY tells you the annualized rate of return based on the reward yield. It takes into account the effect of compounding since sBLKD rebases exponentially.
TVL measures the dollar amount of all the staked BLKD in Wonderland.
Current Index allows you to track your gain from staking. The index started from 1 at epoch 0, and increases every epoch. If you staked at genesis (epoch 0) and never unstaked any BLKD, your balance today would be X times greater, where X is the current index. You can use the index to track your position by marking down the index number when you stake and unstake. You divide the index number when you unstake by the index number when you stake to get the ratio by which your sBLKD balance has increased.
Your Balance tells you how many unstaked BLKD are in your wallet. This is the maximum amount that you can stake.
Your Staked Balance tells you how many staked BLKD are in your wallet. This is the maximum amount that you can unstake.
Next Reward Amount tells you how much sBLKD you are getting next rebase,
Next Reward Yield tells you how much your sBLKD balance will increase when the next epoch begins. For example, if you stake 100 BLKD and the upcoming rebase is 0.5427%, your sBLKD balance would increase from 100 to 100.5427.
ROI (5-Day Rate) estimates how much your sBLKD balance will increase after 5 days, if the reward yield stays the same during this period. For example, if you stake 100 BLKD and the rate is 8.4577%, your sBLKD balance would increase from 100 to 108.4577 after 5 days.
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