# Staking USC

Staking USC entitles holders to a share of the rewards generated by the Dual Stability Mechanism (DSM) of the Chi Protocol. There are two options for staking:

<details>

<summary><strong>stUSC (Rebase Version)</strong>:</summary>

The protocol issues stUSC, an ERC20 token that automatically accrues rewards with each block. As users hold stUSC, their balance increases over time, reflecting the current market APR. This rebase mechanism continuously adjusts the stUSC balance, providing a seamless reward accumulation.

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<details>

<summary><strong>wstUSC (Non-Rebase Version)</strong>:</summary>

Users also have the option to wrap stUSC in exchange for wstUSC, which is an ERC20 token and a non-rebase version of stUSC. Unlike stUSC, wstUSC does not increase in balance but instead increases in value with each block across multiple blockchains. This wrapped version offers a more predictable value accrual without changing the token balance.

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{% hint style="success" %}
Both options provide users with flexibility in how they manage their staking rewards, depending on their preference for rebase or non-rebase assets.
{% endhint %}

<figure><img src="https://679438959-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWSJjW0RbNohJTdo1T9uY%2Fuploads%2Fb8tQuN0PWjLPvAIctL6G%2FFrame%202095585038.svg?alt=media&#x26;token=81ba0dc8-70cc-49f5-b1cd-dffb2506bae1" alt=""><figcaption><p>stUSC vs wstUSC</p></figcaption></figure>

Below are some additional benefits of holding the yield-bearing stablecoins of Chi:&#x20;

<figure><img src="https://679438959-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWSJjW0RbNohJTdo1T9uY%2Fuploads%2Fn49f9xMvWfsC9bQkQHFJ%2FFrame%202095585044%20(1).svg?alt=media&#x26;token=ee545d3b-be33-4d4f-b917-612ebbc07618" alt="" width="563"><figcaption><p>On the properties of stUSC &#x26; wstUSC </p></figcaption></figure>

[More on DSM ](https://chi-protocol.gitbook.io/chi-docs/concepts/dual-stability-mechanism-dsm)\
[More on Sustainable Reward Sources ](https://chi-protocol.gitbook.io/chi-docs/concepts/sustainable-reward-sources)\
[More on Minting and Redeeming USC](https://chi-protocol.gitbook.io/chi-docs/usc/mints-and-redemptions)

## stUSC Staking Rewards Distribution

{% hint style="info" %}
Assuming that 1000 USC gets distributed each second
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<figure><img src="https://679438959-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWSJjW0RbNohJTdo1T9uY%2Fuploads%2FSS9ETfC6l8zfwhu1EAfD%2FFrame%202095584726.png?alt=media&#x26;token=a083316c-00ba-438d-8ce8-f4332c5c2644" alt=""><figcaption><p>stUSC Rewards Distribution</p></figcaption></figure>

## wstUSC Staking Rewards Distribution

<figure><img src="https://679438959-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWSJjW0RbNohJTdo1T9uY%2Fuploads%2FKpkS65Y7sLXAitxz1QF5%2FFrame%202095584727.png?alt=media&#x26;token=10bbe1bb-7bbd-471a-a1ce-49e025aa10b7" alt=""><figcaption><p>wstUSC Rewards Distribution</p></figcaption></figure>

## stUSC APR Calculation&#x20;

<figure><img src="https://679438959-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWSJjW0RbNohJTdo1T9uY%2Fuploads%2FTwrcGzfrvYS93FwRpDgH%2FCentre%20Frame.png?alt=media&#x26;token=df096f34-67b1-4e5f-9db0-3d26f679c6e3" alt=""><figcaption><p>stUSC APR</p></figcaption></figure>

{% hint style="success" %}
**The APRs for both stUSC and wstUSC are equivalent.** While stUSC accrues rewards by automatically increasing the token balance in a rebase mechanism, wstUSC accumulates the same rewards by increasing in value rather than token amount. Despite these differences in how rewards are applied, both tokens yield the same Annual Percentage Rate (APR).
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{% hint style="info" %}
Note that the current rewards are measured and distributed every second.
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[More on APR Formulas ](https://chi-protocol.gitbook.io/chi-docs/resources/apr-formulas)
