Staking is the primary value accrual strategy of Immortal. Stakers stake their IMMO on the Immortal website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of IMMO staked in the protocol and the reward rate set by monetary policy. To ensure the appeal of staking, the reward rate will be adjusted accordingly to the market conditions.
Staking is a long-term strategy. The increase in your stake of IMMO translates into a constantly falling cost basis converging on zero. This means even if the market price of IMMO drops below your initial purchase price, given a long enough staking period, tthe increase in your staked IMMO balance can eventually outpace the fall in price in an ideal scenario.
When you stake, you lock IMMO and receive an equal amount of sIMMO. Your sIMMO balance rebases up automatically at the end of every epoch. sIMMO is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sIMMO and receive an equal amount of IMMO. 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 IMMO (if any) will continue to receive rebase rewards.