# Staking

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### Overview

The SmartDeFi™ Staking Protocol lets holders stake tokens and earn rewards from trading activity and optional extra rewards injected by the project owner.

Staking is designed for long-term holders who want to compound value without actively trading.

### Key features

Key features include:

* Custom deposit and withdrawal fee settings
* Optional unstake delay
* Automatic reward distribution and compounding
* Upgradeable contract logic
* Up to **30** additional reward assets
* Non-transferable **SDSS** staking shares
* Optional sacrifice feature for reward burning

Projects can launch staking with or without lock periods and with or without entry or exit fees.

### Reward source and distribution

Rewards come from:

* On-chain trading activity
* Optional extra reward tokens or coins injected by the project owner

Additional rewards distribute in rounds and can use custom accumulation thresholds.

For example, if the threshold is **1 WBNB**, rewards distribute once the pool reaches that amount.

{% hint style="warning" %}
Unstaking or adding to a stake within the first 30 days after initial staking causes a **50% loss of rewards**. The forfeited portion is redistributed to other stakers.
{% endhint %}

### Simple example

Assume a staking pool receives rewards from trading activity.

Assume the project owner also adds an extra reward asset.

As rewards accumulate, the pool distributes value across all staking shares.

Your return depends on your share of the pool, not on a fixed APR.

### Staking lifecycle

#### Stake tokens

Deposit supported tokens into the staking contract.

The protocol issues **SDSS** to track your share of the pool.

#### Earn rewards

Rewards accumulate from trading activity and any extra rewards added by the project.

Those rewards increase the value represented by your staking shares.

#### Add to a stake

You can add more tokens later.

If you add to a stake within the first 30 days after initial staking, the 50% early reward loss rule applies.

#### Unstake

When you unstake, the protocol returns your stake based on your share balance and pool state.

Optional fees, delays, or sacrifice settings can apply based on the project configuration.

### What SDSS is

After staking, users receive **SmartDeFi™ Stake Shares** or **SDSS**.

SDSS represents ownership in the staking pool and acts as the record used when unstaking.

* SDSS is not a 1:1 ratio
* SDSS updates with each earned token reward
* Total SDSS / Total SD = Ratio
* SDSS cannot be transferred to another wallet

### Optional sacrifice

The sacrifice feature lets users burn a chosen percentage of staking rewards when unstaking.

It is optional and supports users who want to contribute to supply reduction.

To use it, select the sacrifice percentage before completing the unstake.

{% hint style="success" %}
At any point before unstaking, you can turn off the sacrifice by setting it to 0% in the Sacrifice settings.
{% endhint %}

### Common questions

#### Is staking yield fixed?

No.

Rewards depend on trading activity, pool conditions, and any extra rewards added by the project.

#### Can a project enable custom staking rules?

Yes.

Projects can configure fees, delays, reward assets, and other staking settings.

#### What happens if I unstake early?

If you unstake or add to a stake within the first 30 days after initial staking, you lose **50%** of rewards.

That forfeited amount is redistributed to other stakers.

### Related pages

* [SmartDeFi™ Launchpad](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol)
* [Asset-Backing](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol/asset-backing)
* [SmartLending](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol/smartlending)


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