🥩Single-Sided Staking

Single-sided staking allows $BONZO token holders to earn yield without providing liquidity or incurring impermanent loss. By staking $BONZO tokens, users receive $xBONZO tokens as a receipt that represents their share of the staking pool. Over time, as rewards are continuously compounded into the pool, the conversion rate between $BONZO and $xBONZO improves, resulting in higher returns when unstaking.

The $xBONZO Token ID is 0.0.8490541

How Staking Works

The staking mechanism is designed around a continuously improving conversion rate between $BONZO and $xBONZO. This dynamic rate reflects both user contributions and ongoing reward emissions:

Staking Process

1. Stake $BONZO Tokens: When staking $BONZO tokens, receive $xBONZO receipt tokens at the current exchange rate. For example, if the rate is 1 $BONZO = 0.9 $xBONZO, staking 1,000 $BONZO will mint 900 $xBONZO.

2. Hold $xBONZO Tokens: The $xBONZO tokens appreciate in value over time as the staking pool grows via continuous reward emissions.

3. Unstake When Ready: Convert $xBONZO tokens back to $BONZO at any time at the improved conversion rate, without a mandatory lock-up period or unstaking fees (aside from Hedera network fees).

Key Features

Token Locking

When staking $BONZO, tokens are securely locked in the staking smart contract. In return, users receive $xBONZO tokens at the current conversion rate. These $xBONZO tokens represent the user's stake in the protocol and their claim on the underlying $BONZO tokens.

Example:
- Current Conversion Rate: 1 $BONZO = 0.9 $xBONZO
- User stakes 1,000 $BONZO
- User receives 900 $xBONZO tokens
- 1,000 $BONZO remains locked in the contract

Automatic Yield Generation

Unlike traditional staking models that distribute rewards at fixed intervals, our system continuously increases the conversion rate between $BONZO and $xBONZO. This means:

• No manual claiming of rewards

• No tracking of reward distribution epochs

• Value accrues seamlessly in the background

The yield is reflected in the continuously improving conversion rate between $BONZO and $xBONZO. The longer user hold their $xBONZO tokens, the more $BONZO they'll receive when they eventually unstake.

Variable APR

The Annual Percentage Rate (APR) for staking is not fixed and varies based on:

• The total number of $BONZO tokens currently staked in the protocol

• Current $BONZO allocations to the staking rewards contract

Users can check the current effective APR on the staking dashboard. This rate determines how quickly the conversion rate between $BONZO and $xBONZO improves over time.

Monthly Schedule	$BONZO Token Rewards
March 17, 2025 - April 17, 2025	100,000
April 17, 2025 - May 17, 2025	Coming Soon

Unstaking Flexibility

One of the primary advantages of staking is flexibility — users can unstake $xBONZO staking receipt tokens at any time with:

• No minimum lock-up period

• No unstaking fees (except standard Hedera network transaction fees)

• No vesting schedules

When unstaking, $xBONZO tokens are burned, and the user receives $BONZO tokens at the current conversion rate, which should be higher than when initially staked.

CopyExample:
- Initial stake: 1,000 $BONZO → 900 $xBONZO (at 0.9 conversion rate)
- After 6 months: Conversion rate improves to 0.85
- Unstaking 900 $xBONZO would return 1,058.82 $BONZO (900 ÷ 0.85)
- Net gain: 58.82 $BONZO (5.88% return)

Growth Effect

The improving conversion rate creates an effect similar to compound interest. The longer $xBONZO tokens are held, the more $BONZO will be received when unstaked. This incentivizes long-term participation in the protocol's ecosystem.

Governance Rights (Coming Soon)

In 2025, $xBONZO tokens will grant holders governance rights proportional to their stake. This will allow $xBONZO holders to:

• Vote on protocol changes

• Participate in protocol upgrade decisions

• Influence DAO treasury fund allocations

• Shape the future development of the Bonzo Finance ecosystem