Staking

APY.LOL places staking at its core, aiming to foster long-term participation and stability within the protocol. By leveraging game theory, APY.LOL aligns user incentives to ensure that staking $APY remains the most advantageous choice for participants.

STAKE SMARTER, EARN APY

What is staking? Staking is the primary value accrual strategy of APY.LOL. Users who stake their $APY tokens on the APY.LOL dApp earn rebase rewards.

Staking is a passive, long-term approach. As your staked $APY balance grows through rebases, your average cost basis continually decreases, tending toward zero. This means that, over time, even if the market price of $APY falls below what you initially paid, the increasing quantity of your staked tokens can outpace any price decline, ultimately preserving or growing your overall position.

The main benefit for stakers lies in supply growth. The protocol mints new $APY tokens from the Treasury, distributing the majority of them to stakers. Consequently, stakers benefit from auto-compounding balances, with the understanding that price fluctuations still matter. As long as token balance growth outstrips any inflation-driven price drops, stakers stand to make a profit.

Dynamic Staking Mechanism APY.LOL offers a highly flexible staking system that continuously operates, allowing users to stake, claim, or compound their $APY tokens at any time.

• Claiming Rewards: When you claim your rewards, you immediately receive 100% of what you’ve accrued. However, to continue earning, you must relock your stake for at least one epoch.

• Compounding: If you choose to compound instead of simply claiming, you still receive 100% of your rewards, plus you gain an additional compound streak bonus to amplify your returns.

• Fees: There are no fees on staking. Unstaking incurs a 5% fee.