🔓Staking
Overview
Cryptocurrency staking means “locking up” a digital asset or being a validator in a decentralized crypto network.
Staking is the primary value-accrual strategy of many DeFi protocols. For Neutron Protocol, users would stake their $NTR through Neutron's dApp website to earn rewards. These rewards derive from bond sales proceeds and may vary based on the number of $NTR staked within the protocol and the reward rate which is set by an algorithmic monetary policy.
Staking
When you stake, you:
1. Deposit in $NTR or $bNTR and receive an equal amount of $sNTR.
2. Rewards in $NTR are available to claim at the end of every epoch (6 hours).
3. $NTR deposit have a 2% fee, $bNTR are exempt from fee.
To do it is easy!
1. Go to the Neutron website and select “stake.”
2. Chose which way you want to redeem your $sNTR a. Real-Time Market Price: you'll redeem your $sNTR at Real Time Market Price b. Fixed Rate: you'll redeem your $sNTR at a Fixed Rate when you stake your $sNTR
3. Send your $NTR or $bNTR to the staking contract and receive $sNTR at a 1:1 basis.
Unstaking
When you unstake, you:
1. Go to our website and select “your tickets”, select the ticket you wish to unstake tokens from, and the amount.
2. Unstaking also requires the user to pay a small withdrawal tax (6%) as an exit fee.
3. $bNTR withdrawals are exempt from fee.
Redeem
You can redeem your staked $NTR ($sNTR)
When you stake you'll have to chose which way you want to redeem your $sNTR a. Real-Time Market Price: you'll redeem your $sNTR at Real Time Market Price b. Fixed Rate: you'll redeem your $sNTR at a Fixed Rate when you stake your $sNTR
Redeem is unlocked proportionally to your staking amount. Every epoch, around 3.57% of your deposit is available for a redeem.
Redeem avoid sell taxes.
100% of $NTR and $bNTR tokens redeemed are burn for ever.
Enhance Buy pressure and reduce Sell pressure.
The reason to stake — Redeem
Redeem is the most important features to enhance value of $NTR. After a specific staking period, you will be able to redeem your $NTR without going through the market and redeem them at their real value at the current market price. This allows you to avoid paying the sell tax and it is also very important for the sustainability of the protocol since the $NTR redeem for $wETH are definitely burned.
Conclusion
Staking is how profits are distributed equitably to the participants. By way of $sNTR, everyone will get the same percentage profit for each epoch. Therefore, the act of rebasing also gives us the chance to compound yields without having to harvest or do anything apart from holding.
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