Staking Mechanism

$BLEND represents a share of the Vino vault that consists of RWAs. The token price increases over time, as so do the underlying RWAs. Therefore, Vino always has a price per token for which $VINO can be burned or minted at.

When a user wishes to stake, they simply get $stBLEND back. Since $stBLEND does not earn any RWA yield, the token remains the same price. One $stBLEND is always minted for every dollar of market value worth of $BLEND deposited.

The same goes for unstaking $stBLEND. Each $stBLEND token is worth $1 when redeeming back for an equivalent value of $BLEND at its current price.

Example:

User A owns 100 $BLEND tokens, priced at $1.10 each → $110

User A wishes to stake, so they deposit their 100 $BLEND tokens into the contract, and receive 110 $stBLEND tokens.

Later $BLEND is worth $2.20. User A wishes to unstake $stBLEND. They unstake their 110 $stBLEND tokens, and receive $110 worth of $BLEND (50 $BLEND tokens).