⛏️Staking

What is Staking?

Staking is the primary value accrual strategy of Pegasus. Stakers can receive rebase rewards by staking their SUS tokens on the Pegasus Website. The rebase incentives are derived from bond sales proceeds and can vary according to the number of SUS staked in the protocol and the reward rate set by monetary policy.

Staking is a passive, long-term strategy. The rise in your SUS stake translates into a constantly declining cost basis that eventually converges on zero. This means that even if the market price of SUS falls below your initial purchase price, if you stake for a long enough length of time, the increase in your staked SUS balance should eventually overtake the price fall.

When you stake, you lock SUS and receive an equal amount of vSUS. Your vSUS balance rebases up automatically at the end of every epoch. vSUS is transferable and therefore composable with other DeFi protocols.

When you unstake, you burn vSUS and receive an equal amount of SUS tokens. Unstaking means that the user will miss out on the next rebase payout. It should be noted that the forfeited reward only applies to the amount that was not staked; the remaining staked SUS (if any) will continue to receive rebase rewards.