🥩Single Sided Staking
🥩 Single-Sided Staking
Staking enables you to participate in the protocol's Safety Module by exchanging $PRSM for $xPRSM.
The xPRSM Model
xPRSM is a liquid receipt token that represents your share of the staking pool. Its value is derived from a dynamic exchange rate rather than manual distributions.
No Claiming: You do not need to manually manage or claim tokens.
Ratio Mechanics: As additional PRSM flows into the xPRSM Smart Contract, the total amount of PRSM backing each xPRSM token increases.
Result: The conversion rate rises over time.
Value Accrual Mechanics
The increase in the PRSM-to-xPRSM ratio is driven by token inflows from two specific sources.
Phase 1: Bootstrapping (Launch)
Initially, the staking pool balance increases via Community Incentives (Emissions).
New tokens are emitted directly into the staking contract.
This increases the total PRSM reserves in the pool without minting new xPRSM, causing the exchange rate to rise.
Phase 2: Protocol Revenue (Maturity)
As the protocol matures, emissions are tapered off and replaced by Protocol Revenue.
The protocol uses the settlement fee to buy back PRSM on the open market.
These purchased tokens are deposited into the staking contract.
Effect: This mechanism ensures that protocol activity directly increases the amount of PRSM backing the circulating xPRSM supply.
How to Stake
Stake: Deposit PRSM into the staking contract.
Receive: You instantly mint xPRSM at the current exchange rate.
Hold: As tokens are deposited into the pool via buybacks & emissions, the redemption value of your xPRSM increases relative to PRSM.
Unstake: Burn xPRSM to redeem your PRSM at the current conversion rate.
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