Staking

Understanding staking

Staking is the easiest way to utilize DEFI for the highest rewards. You simply buy or mint DEFI and then stake it via the D3 Protocol website. By staking your DEFI you earn rebase rewards. These rewards are accumulated from the proceeds of mints, and vary depending on the number of DEFI staked and the reward rate set by the monetary policy of the DAO.

We are prioritizing a long sustainable runway, over trying to attract users with deceptive, unsustainably high yields that other protocols offer. APY is automatically calculated by the protocol based on a dynamic mint and pricing criteria. It will start higher and decrease as more stakers join the ecosystem.

In addition, our staking algorithm will reduce the APY rewards over time when certain treasury milestones are hit. However, rewards are still highly attractive. The APY is automatically calculated by the protocol, but is programmed to offer realistic returns for long-term sustainability.

Your rewards are always proportional to your percentage holding of total circulating supply. If you stake on day one and do not unstake you will maintain the same percentage of total market cap as you have on day 1.

The economics of staking

When you stake your DEFI you receive an equal amount of sDEFI. Stakers receive rebase rewards at the end of each epoch (a set time period). Rewards auto-compound bringing down the average purchase price, converging on zero. If the price of DEFI drops below your purchase price, rewards will eventually outpace the drop, bringing you back to break even, or profit.

Staking rewards are quoted in APY percentage, and the staking dashboard also shows the specific reward yield, and 5-day ROI percentages, based on the current rate as set by the protocol. Rebase rewards are paid out from the D3 Protocol treasury, and automatically compound after the end of each epoch.

When you unstake, your sDEFI is converted back to DEFI and you are free to use your DEFI as you wish (re-stake, mint, or sell). Remember, if you sell your unstaked DEFI, you are liable for a 12% tax on your transaction. The easiest and most lucrative strategy is to stake your DEFI and let the rewards stack up over a prolonged period.