Introduction of Staking (🐍, 🐍)

2 min readNov 4, 2021

You can relax, because this one is simple. Staking is the profit distribution mechanism of Uroboros Finance. It is designed as the dominant strategy for participants; the best thing to do will likely be to just stake, hold, and compound.

Let’s go over how it works:

Staking

To stake SNAKE, you go to our website and select “stake.” You will send your SNAKE to the staking contract and receive sSNAKE at a 1:1 basis. sSNAKE is a transfer-restricted rebasing token and is not meant to be traded or used for anything except holding.

Unstaking

To unstake SNAKE, you go to our website and select “unstake.” You send sSNAKE back to the staking contract to receive SNAKE at 1:1.

Rebase

The protocol distributes tokens by sending them to the staking contract without asking for sSNAKE back. This increases the ratio of SNAKE staked to sSNAKE outstanding, and results in a rebase to correct the difference.

For example: there are 500k SNAKE staked and 500k sSNAKE outstanding. The protocol produced $5k profit for the day, which it uses to mint and back 5k SNAKE. It sends those SNAKE to the staking contract; there are now 505k SNAKE staked and 500k sSNAKE outstanding. sSNAKE supply needs to increase by 5k, or 1%, to return to balance. So, sSNAKE is rebased up by 1%.

The only caveat is that rebases occur retroactively. The end of epoch 100 triggers a rebase of profits from epoch 99. This delay lets you see what you’re missing if you want to unstake or what you’ll get if you want to stake.

Conclusion

Staking is how we distribute profits equitably to participants. Through sSNAKE, everyone receives the same percentage profit per epoch. Rebasing also allows us to compound yield with no need to harvest or do anything except hold.

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Introduction of Staking (🐍, 🐍)

Written by Uroboros Finance