Staking is the primary value accrual strategy of Sishi Finance. Stakers stake their SISHI tokens on Sishi Finance to earn rebase rewards. The rebase rewards come from the proceeding from bonding, and can vary based on the number of SISHI 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 SISHI translates into a constantly falling cost basis converging on zero. This means even if the market price of SISHI drops below your initial purchase price, given a long enough staking period, the increase in your staked SISHI balance should eventually outpace the fall in price.
When you stake, you lock SISHI and receive an equal amount of sSISHI. Your sSISHI balance rebases up automatically at the end of every epoch. sSISHI is transferable and therefore composable with other DeFi protocols.
When you un-stake, you burn sSISHI and receive an equal amount of SISHI tokens. Un-staking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the un-staked amount; the remaining staked SISHI (if any) will continue to receive rebase rewards.