Staking

LP Staking

Staking liquidity tokens is the primary profit strategy in TAO. In return, LPs receive a share of the protocol's profits (50%). This does not auto-compound however unlike ETH, the fees to compound are much cheaper on BSC. The profits generated are rewarded at the end of each epoch. Unstaking requires the user to forfeit the most recent epoch profit. LPs benefit from a far better risk profile and help achieve the stability we desire.

Single Asset Staking

Stakers lock their TAO in return for sTAO, in return, they receive a share of protocol profits (40%) through rebases to the sTAO token. This allows the automatic compounding of yield. Staking is a passive, long-term strategy. With each rebase, the cost basis of a staker asymptotically converges towards zero. Therefore due to the protocols intrinsic value providing a floor, stakers can be rebased to a risk-free position over the long term.

When staking, users receive an equal amount of sTAO to the TAO they stake. This sTAO will be rebased up within your wallet at the end of every epoch (6h). sTAO cannot be traded or used other than being an IOU for an equal amount of TAO. Unstaking burns sTAO and also requires the user to forfeit the most recent rebase as an exit fee.