What is Staking?

Staking is the primary value accrual strategy of Neverland. Stakers stake their HOOK on the Neverland Website to earn rebase rewards. The rebase rewards come from the proceed from mint procedure, and can vary based on the number of HOOK 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 HOOK translates into a constantly falling cost basis converging on zero. This means even if the market price of HOOK drops below your initial purchase price, given a long enough staking period, the increase in your staked HOOK balance should eventually outpace the fall in price.

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

When you unstake, you burn CLOCK and receive an equal amount of HOOK. 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 HOOK (if any) will continue to receive rebase rewards.

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