Staking DAO

Staking

What is Staking DAO

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