Staking

What is staking?

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

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

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