Staking

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

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

When you unstake, you burn sVERSE and receive an equal amount of VERSE 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 VERSE (if any) will continue to receive rebase rewards.