Staking
Staking is the primary value accrual strategy of Euphoria. Stakers stake their WAGMI tokens on Euphoria to earn rebase rewards. The rebase rewards come from the proceeds of bond sales, and can vary based on the number of WAGMI staked in the protocol and the reward rate set by the monetary policy.
Staking is a passive, long-term strategy. The increase in your stake of WAGMI translates into a constantly falling cost basis converging on zero. This means even if the market price of WAGMI drops below your initial purchase price, given a long enough staking period, the increase in your staked WAGMI balance should eventually outpace the fall in price.
When you stake, you lock WAGMI and receive an equal amount of sWAGMI. Your sWAGMI balance increases automatically at the end of every epoch. sWAGMI is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sWAGMI and receive an equal amount of WAGMI tokens. 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 WAGMI (if any) will continue to receive rebase rewards.
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