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