Staking

Staking is one of Xenophon’s main value acquisition strategies. The purpose is to allow users to generate compound interest through staking. The profit or reward is the income from the sale of bonds. The income is different according to the amount of stake XPH in the Xenophon Protocol and the reward rate set by the currency.
The above description can be imagined as if we choose to deposit funds in the bank regularly or on demand, the bank will pay you a certain fixed interest, but the APY in Xenophon is equivalent to the daily interest, which has recently been higher than many mature decentralized products, such as Compound, Aave, etc. The interest generated by Xenophon is dozens of times higher, or even hundreds of times higher. Of course, this is also a high return to users who believe in this product in the early stage, at the same time, you have to bear the corresponding risk of holding XPH.
Staking is a passive long-term strategy. The increase in your XPH shares will translate into a declining cost base, which tends to zero. This means that even if the market price of XPH is lower than your initial purchase price, as long as there is a long enough staking period, the increase in your stake XPH balance should eventually exceed the price drop.
For example: Suppose you buy an XPH for $100, and the compound interest generated every day is 2%. If you start with a balance of 1 XPH on the first day, after one year, your balance will grow to about 1,377XPH, according to the worst result, the price of XPH drops to 1 BUSD (intrinsic value of US$2), and it will be worth 2,754 US dollars a year later. What's more, the price of XPH will not drop to 1 BUSD, and the profit drive will not make everyone sell the XPH in their hands.
Why is 1 BUSD? Because 1 XPH=1 BUSD, the Protocol will trigger the treasury to recover and destroy all XPH on the market when it is lower than 1 BUSD, until it is not sold. This is also the reason why the treasury is very important to the Protocol.
If you are a short-term interest seeker or you do not agree with this concept, you can choose not to hold it, so as not to cause potential risks to you.

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How to Stake

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