When you stake your SODA tokens on SODAX Stake, they are deposited into a staking pool. In return, you receive xSODA, a token that represents your share of that pool.
🧠 Your SODA doesn't just sit idle. Staked SODA is added to a pool of liquidity that continuously grows as protocol fees are deposited into it.
How the Staking Pool Works
The staking pool holds all SODA deposited by stakers. On top of this, a 20% revenue split from fees generated by the SODAX system is regularly deposited into the same pool. This means the total amount of SODA in the pool grows over time, even though no individual staker is adding more.
Because the pool grows in SODA terms, the value of each share of the pool also increases.
What is xSODA?
When you stake SODA, you receive xSODA in return. This token represents your proportional share of the staking pool. As fees are deposited into the pool, the amount of SODA backing each xSODA increases.
This means that when you eventually unstake, your xSODA will be redeemable for more SODA than you originally deposited. You do not need to manually claim rewards; they are reflected automatically in the growing value of xSODA relative to SODA.
💡 xSODA is a liquid token. While your SODA is staked, you will be able to hold or provide your xSODA as liquidity on SODAX Pool. Your rewards continue to accrue regardless.
Need Help?
If you have any further questions about staking or need assistance, visit our Support Center for more articles and resources, or contact our support team via the button in the bottom right.