> For the complete documentation index, see [llms.txt](https://vlabs.gitbook.io/vesq/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vlabs.gitbook.io/vesq/basics/staking.md).

# Staking

## What is Staking

**Staking is the primary value accrual strategy of VESQ.** Stakers stake their **VSQ** on [the VESQ website](https://vesq.io) to earn rebase rewards. The rebase rewards come from the proceed from [bond sales](https://vesq.gitbook.io/vesq/basics/bonding), and can vary based on the number of **VSQ** staked in the protocol and the reward rate set by monetary policy.

**Staking is a passive, long-term strategy.** The increase in your stake of **VSQ** translates into a constantly falling cost basis converging on zero. This means even if the market price of **VSQ** drops below your initial purchase price, given a long enough staking period, the increase in your staked VSQ balance should eventually outpace the fall in price.

**When you stake, you lock VSQ and receive an equal amount of xVSQ.** Your sVSQ balance rebases up automatically at the end of every epoch. **sVSQ** is transferable and therefore composable with other DeFi protocols.

**When you unstake, you burn xVSQ and receive an equal amount of VSQ.** Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked **VSQ** (if any) will continue to receive rebase rewards.