> For the complete documentation index, see [llms.txt](https://pegasus-dao.gitbook.io/pegasus-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pegasus-dao.gitbook.io/pegasus-dao/the-basics/staking.md).

# 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 v**SUS** balance rebases up automatically at the end of every epoch. v**SUS** 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.