Staking

What is Staking

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

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

When you unstake, you burn $sMINT and receive an equal amount of $MINT tokens. 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 $MINT (if any) will continue to receive rebase rewards.