Slohm

Staking#

Staking is the primary value-accrual mechanism for Slohm holders. When you stake Slohm, you receive ySLOHM and earn additional Slohm over time through rebase distributions. These rewards are funded by real treasury yield — not arbitrary inflation schedules.

What is Staking?#

When you stake Slohm, your tokens are deposited into the staking contract and you receive ySLOHM (yield-bearing Slohm) in return. ySLOHM represents your staked position and automatically accumulates rebase rewards at the end of each epoch.

Staking is the simplest way to grow your Slohm position. Once staked, your holdings compound automatically — no additional action is required. Each rebase distributes new Slohm proportionally to all stakers based on their share of the total staked supply.

Rebase Mechanics#

Rebases are the mechanism through which staking rewards are distributed. At the end of each epoch, the protocol mints new Slohm and distributes it to all stakers proportionally. This is funded by real yield generated from the treasury's deployed capital.

Key properties of the rebase system:

Protocol Parameters#

| Parameter | Production | Testnet | |---|---|---| | Epoch length | 48 blocks (~8 hours) | 48 blocks | | Reward rate | 0.1% per epoch | 0.1% per epoch | | Warmup period | 2 epochs (96 blocks) | 0 epochs (instant) | | Cooldown period | 3 days (~432 blocks) | 1 block (~10 seconds) |

Epoch Length#

Each epoch spans 48 Bitcoin blocks, approximately 8 hours. At the end of every epoch, the protocol evaluates treasury yield and distributes staking rewards via a rebase. With roughly three rebases per day, staked positions compound continuously.

Reward Rate#

The base reward rate is 0.1% per epoch. This means that for every epoch, stakers collectively receive 0.1% of the total staked supply as new Slohm. This rate is tied to the protocol's ability to generate real yield — it is not a fixed promise but a reflection of treasury performance.

Warmup Period#

On mainnet, newly staked positions enter a warmup period of 2 epochs (96 blocks, approximately 16 hours) before they become eligible for rebase rewards. This prevents flash-staking attacks where actors stake briefly to capture a rebase and immediately unstake.

On testnet, the warmup period is set to 0 for ease of testing.

Cooldown Period#

When you unstake, your Slohm enters a cooldown period before it becomes withdrawable. On mainnet, this cooldown is approximately 3 days (432 blocks). This mechanism protects the protocol from sudden mass unstaking events that could destabilize the reserve.

Unstaking#

To unstake, you initiate a withdrawal through the staking contract. Your ySLOHM is burned and your Slohm is queued for release after the cooldown period. Once the cooldown expires, you can withdraw your Slohm freely.

During the cooldown period, your Slohm does not earn rebase rewards. This creates a natural incentive to remain staked — the longer you stake, the more you benefit from compounding.

Presale Staking#

Presale participants receive staked Slohm (ySLOHM) immediately upon acquisition. There is no waiting period, no cliff, no separate staking step — earning begins from day one. Presale holders begin compounding rewards from the very first epoch after launch.

This design rewards early supporters and ensures that presale tokens are immediately productive within the protocol.

The (B,B) Dynamic#

The protocol's game theory encourages a cooperative equilibrium where the optimal strategy for all participants is to bond and stake — known as the (B,B) dynamic:

When most participants bond and stake, the treasury grows consistently, rewards remain robust, and the reserve floor rises for all holders. Individual decisions to sell create short-term opportunity for others to bond at better rates, naturally rebalancing the system.

What's Next?#

Learn how the protocol's mechanics create natural price stability through Arbitrage dynamics, or explore how the treasury generates the yield that funds staking rewards in Reserve Strategies.