> For the complete documentation index, see [llms.txt](https://docs.silverbackdefi.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.silverbackdefi.app/usdback-token/staking-rewards.md).

# Staking & Rewards

Stake $BACK to earn your share of protocol revenue.

***

## How Staking Works

1. **Stake $BACK** → Lock tokens in the staking contract
2. **Earn Rewards** → Receive share of buyback distributions
3. **Claim or Compound** → Take rewards or add to stake
4. **Unstake Anytime** → Withdraw your tokens when ready

***

## Reward Mechanism

### Where Rewards Come From

Unlike inflationary staking (minting new tokens), Silverback rewards come from **real revenue**:

```
Protocol Revenue
      ↓
  Buybacks ($BACK purchased from market)
      ↓
  Staking Pool (bought tokens deposited)
      ↓
  Distributed to Stakers
```

This means:

* Rewards are backed by actual profits
* No token supply inflation
* Sustainable long-term yield

### Reward Distribution

Rewards are distributed proportionally based on:

* Your staked amount
* Total amount staked by all users
* Revenue generated in the period

**Example:**

* Total staked: 1,000,000 $BACK
* Your stake: 10,000 $BACK (1%)
* Period rewards: 5,000 $BACK
* Your rewards: 50 $BACK (1%)

***

## Staking Guide

### How to Stake

*Coming soon after token launch*

1. Go to the Staking page
2. Connect your wallet
3. Enter amount to stake
4. Approve $BACK (first time only)
5. Confirm stake transaction
6. Start earning rewards

### Claiming Rewards

1. Visit Staking page
2. View accumulated rewards
3. Click "Claim" to receive
4. Or "Compound" to add to stake

### Unstaking

1. Visit Staking page
2. Click "Unstake"
3. Enter amount to withdraw
4. Confirm transaction
5. Receive $BACK in wallet

***

## Staking Benefits

| Benefit           | Description                           |
| ----------------- | ------------------------------------- |
| Revenue Share     | Earn from DEX fees & trading profits  |
| No Lockup         | Unstake anytime (no penalties)        |
| Compound Growth   | Reinvest rewards for higher returns   |
| Governance Weight | Staked tokens count toward voting     |
| Sustainable Yield | Backed by real revenue, not inflation |

***

## APR Factors

Your actual APR depends on:

1. **Protocol Revenue** — More trading volume & profits = higher rewards
2. **Total Staked** — More stakers = rewards split more ways
3. **Token Price** — Affects buyback quantities

APR will vary based on these factors. Higher protocol usage generally means better staking returns.

***

## Staking vs. Holding

| Factor       | Just Holding      | Staking            |
| ------------ | ----------------- | ------------------ |
| Earn Rewards | ❌                 | ✅                  |
| Governance   | Limited           | Full weight        |
| Flexibility  | Instant transfers | Must unstake first |
| Effort       | None              | Minimal            |

For long-term holders, staking maximizes your returns without additional risk.

***

## Security

* Staking contracts will be audited
* No admin keys that can drain funds
* Non-custodial — you maintain ownership
* Transparent on-chain mechanics

***

## FAQ

**Is there a minimum stake?** TBD — will be announced at launch.

**Is there a lockup period?** No mandatory lockup. Unstake anytime.

**When are rewards distributed?** Distribution schedule TBD — likely weekly or on-demand claiming.

**Can I compound automatically?** Manual compounding at launch. Auto-compound may be added later.

**What happens if I unstake partially?** You keep earning on remaining stake. Rewards calculated proportionally.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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.silverbackdefi.app/usdback-token/staking-rewards.md?ask=<question>
```

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.