# Single-Sided Staking [Single-sided staking](https://app.bonzo.finance/stake) 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**](https://hashscan.io/mainnet/token/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: C**onvert $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](https://app.bonzo.finance/stake). 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, 2025100,000
April 17, 2025 - May 17, 2025Coming 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 --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.bonzo.finance/hub/staking-nfts-and-points/single-sided-staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.