> 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.