Staking

bentoX tokens do not automatically earn a yield but they can be staked in bentoX staking contracts to receive bentoX+, yield bearing version of bentoX. bentoX+ holders earn X-Bento Savings Rate (BSR) based on the returns generated by the protocol on the collateral assets backing the bentoX that has been staked.

bentoX+ does not come with any extra composability risk, and there are no additional trust assumptions between owning bentoX and its staked version. bentoX staking contracts are simple ERC4626 contracts, which means that upon staking bentoX users receive a classical ERC20 token, bentoX+ that can then be transferred, staked, lent or used in any way they want. The value of these tokens is not designed to remain pegged to their respective underlying asset, but increases over time as yield accrues to it. bentoX+ tokens are yield bearing and not rebasing and the exchange rate between bentoX and their staked equivalent is encoded in the staking smart contract. bentoX can be instantly staked and bentoX+ can be minted in one transaction while bentoX+ can be instantly redeemed for bentoX at the current exchange rate.