Staking

How It Works:

DracoFi offers a single staking rate, determined by the relationship between staked and unstaked $DRACO tokens. Users can stake their $DRACO tokens to earn rewards, which can be compounded to accumulate more $DRACO. These accumulated tokens can then be redeemed from the treasury or sold on the market at a rate that suits the user’s strategy.

Staking rewards are distributed every epoch (8 hours), and users can continue compounding to maximize their returns. There is a 20% unstaking fee for users who do not wish to wait for the full lock-up period of 10 epochs before redeeming all of their $DRACO tokens.

Benefits for Users:

Staking $DRACO allows users to earn consistent rewards and build up their holdings.

By compounding their staking rewards, users can grow their exposure to DracoFi over time. The option to redeem or sell $DRACO tokens at a favorable rate gives flexibility in how users manage their investments.

However, the 20% unstaking fee encourages users to plan carefully and commit to the lock-up period to maximize their gains.

Benefits for DracoFi:

The staking mechanism supports DracoFi by encouraging long-term commitment from users, reducing the circulating supply and mitigating sell pressure.

The 20% unstaking fee further disincentivizes early exits, promoting stability within the protocol. Additionally, the treasury remains strong as users choose to either compound their earnings or strategically redeem their tokens, maintaining a healthy balance between staked and unstaked assets.