Staking

What is Staking?

Stakers stake their IMP on the ImpDAO website to earn the reward yield. The reward yield comes from the protocol revenues and can vary based on the number of IMP staked in the protocol and the rebase rate set by ImpDAO's monetary policy.

Staking is a passive, long-term strategy. The increase in your stake of IMP translates into a constantly falling cost basis converging on zero. This means even if the market price of IMP drops below your initial purchase price, given a long enough staking period, the increase in your staked IMP balance should eventually outpace the fall in price.

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

When you unstake, you burn sIMP and receive an equal amount of IMP and stop receiving rebases.