# How it Works

## The Basic Flow

```
You deposit PRO into staking contract
        ↓
Contract records your stake and period
        ↓
Every 12 hours, rebase triggers
        ↓
Protocol calculates rewards from treasury
        ↓
Your staked balance increases
        ↓
New balance compounds next rebase
```

No claiming. No gas for rewards. Automatic.

## Step by Step

{% stepper %}
{% step %}

### Deposit

When you stake:

* PRO transfers from your wallet to staking contract
* Your position is recorded with timestamp and period
* You become eligible for next rebase
  {% endstep %}

{% step %}

### Rebase (Every 12 Hours)

The protocol:

* Calculates total rewards to distribute
* Requests minting from treasury (backed by reserves)
* Adjusts all staker balances proportionally
  {% endstep %}

{% step %}

### Compound

Your new, larger balance earns the next rebase. This is compound interest — earnings on earnings.
{% endstep %}

{% step %}

### Unstake

When you want to exit:

* Request unstake through dApp
* Principal unlocks linearly over blocks
* Withdraw available balance anytime
  {% endstep %}
  {% endstepper %}

## What You See

| Before Staking    | After Staking     |
| ----------------- | ----------------- |
| Wallet: 1,000 PRO | Wallet: 0 PRO     |
| Staked: 0 PRO     | Staked: 1,000 PRO |

After 30 days (assuming \~0.7% daily):

| Position | Amount      |
| -------- | ----------- |
| Staked   | \~1,233 PRO |
| Earned   | \~233 PRO   |

Your staked balance shows the growth directly.

## Contract Interaction

The staking contract uses sharded permissions:

| Shard               | Function                         |
| ------------------- | -------------------------------- |
| Asset Vault         | Holds your staked PRO separately |
| Cycle Policy        | Manages period parameters        |
| Reward Distribution | Handles rebase calculations      |

Sharding means your funds are isolated — issues in one module don't affect others.

## Security Features

* **Multi-signature** — Contract operations require 5/6 signatures
* **Linear unlock** — Prevents instant large withdrawals
* **On-chain** — All transactions verifiable
* **No custody** — You can always unstake (linear unlock applies)

## Common Questions

<details>

<summary>Do I need to do anything after staking?</summary>

No. Rebase is automatic. Just wait.

</details>

<details>

<summary>Can I add more to my stake?</summary>

Yes. Additional stakes may create separate positions or merge, depending on contract implementation.

</details>

<details>

<summary>What if I unstake before my period ends?</summary>

You can unstake anytime (linear unlock), but may forfeit period bonuses.

</details>

## Next

* [Staking Periods](broken://pages/5cba4116cecde5903ed361c25a3820d6fbd61fd9) — Understand lock durations
* [APY Calculation](broken://pages/7635b6e8af7afc93c7b6042a9038ae10d4408936) — Calculate your returns


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