What is Staking

Staking is the primary value accrual strategy of OtterClam. Stakers stake their CLAM tokens on the OtterClam website to earn harvest rewards. The harvest rewards come from the proceeds from bond sales and can vary based on the number of CLAM tokens staked in the protocol and the reward rate set by monetary policy.
Staking is a passive, long-term strategy. The increase in your stake in CLAM translates into a falling cost basis converging on zero. This means even if the market price of CLAM drops below your initial buy price, the increase in your staked CLAM balance should outpace the fall in price given enough time.
When you stake, you lock CLAM and receive an index-adjusted equal amount of PEARL. Your PEARL value will increase automatically at the end of every epoch. PEARL is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sCLAM and receive an equal amount of CLAM. Unstaking means the user will give up the upcoming harvest reward. Note that the forfeited reward is only applicable to the unstaked amount. The remaining staked CLAM (if any) will continue to receive harvest rewards.
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