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