AID <--> sAID

Staking and Unstaking

Users can stake their AID through GAIB's interface. A “Stake” transaction exchanges AID for sAID, a liquid receipt token representing the staked position. Conversely, an “Unstake” transaction returns staked AID to the user, instantly updating balances upon confirmation on the blockchain.

A cooldown period applies after unstaking, during which users cannot withdraw AID. Once the cooldown expires, users can withdraw their unstaked AID.

Reward Mechanism

GAIB leverages a token vault approach—similar to Rocketpool’s rETH or Binance’s WBETH—to deliver rewards seamlessly.

1. Vault Mechanics

   • No Rehypothecation: Deposited AID remains in the staking contract; it is not lent out or repurposed.

   • Reward Accrual: Protocol-level revenue is periodically deposited into the staking contract, increasing the value of sAID in relation to AID.

2. Value Growth

   • sAID’s worth in AID terms rises over time as protocol rewards flow in.

   • The sAID:AID ratio is calculated as: sAID:AID ratio = (total sAID supply) / (total AID staked + total protocol revenue deposited in AID terms)

   • Users often receive fewer sAID tokens than the AID they stake, but the total value matches. As the ratio increases, sAID appreciates in AID terms.

When users unstake, they receive an amount of AID equal to their initial stake plus accrued rewards, as reflected by the increased sAID-to-AID ratio.

Important Notes

• Stakers Need Not Take Extra Steps Simply holding sAID accrues benefits automatically.

• Fewer Tokens, Equivalent Value Receiving fewer sAID tokens than AID deposited is normal; the underlying value remains the same.

• Cooldown Period After unstaking, stakers must wait till the cool down period finishes before withdrawing AID.

By aligning sAID with real protocol growth through a transparent ratio mechanism, GAIB ensures that staking remains straightforward, secure, and rewarding.