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Compound Staking
Note: There is No Direct Access to Compound Staking: Please Read
There is no direct method to stake in the compound staking pool as of March 2022. Users must use Treasury Bonds or Programs to be able to Claim and Stake their PRXY rewards. Claim and Stake is a one click function that opens the access to the compound staking.
What is Compound Staking
Staking is the primary value accrual strategy of Proxy. Stakers stake their PRXY in the compounding pool to earn rebase rewards. The rebase rewards come from the proceeds from bonds and can vary based on the number of PRXY 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 PRXY translates into a constantly falling cost basis converging on zero. This means even if the market price of PRXY drops below your initial purchase price, given a long enough staking period, the increase in your staked PRXY balance should eventually outpace the fall in price.
When you stake, you lock PRXY and receive an equal amount of sPRXY. Your sPRXY balance rebases up automatically at the end of every epoch. sPRXY is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sPRXY and receive an equal amount of PRXY. 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 PRXY (if any) will continue to receive rebase rewards.
Last modified 1mo ago
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What is Compound Staking