Comment on page
The CRO Liquid Staking derivative that represents the underlying staked CRO
Bonded CRO ("bCRO")
bCRO is a liquid, tokenized representation of the staker’s staked CRO. bCRO enables stakers to gain liquidity over their staked CRO and enables the locked value of the staked CRO to be utilized across decentralized finance applications across Cronos.
No, you don’t have to.
bCRO is a yield-bearing token which means that the staking yields generated every block by staking CRO are directly accrued to bCRO. Hence, as more CRO rewards are accrued to the bCRO contract, the value of each bCRO is backed by more CRO, increasing its value.
The staking rewards will be represented by the increase in bCRO:CRO exchange rate - when you swap bCRO back to CRO at a later time, you'll find that you receive more CRO than you initially put in.
Price of bCRO = (Total CRO staked + Total CRO staking rewards) / bCRO in circulationbCRO in circulation = Total bCRO minted - Total bCRO burnt
Whenever CRO is staked on Argo, an equivalent amount of bCRO is minted based on the current bCRO:CRO exchange rate on Argo. Argo can only mint new bCRO whenever CRO is staked on the protocol. Vice versa, Argo can only burn circulating bCRO whenever CRO is unstaked from the protocol.
This thus ensures that the bCRO:CRO exchange rate on Argo is ever increasing according to the CRO staking yields emitted by Crypto.org Chain. Only in the scenario of a validator slashing event or smart contract exploit will the exchange rate be affected. Our delegation strategy aims to minimize slashing risks.
Current bCRO:CRO rate: 1 bCRO = 1.1 CROJohn stakes 10 CRO on Argo today and gets 9.0909 bCRO in return.bCRO:CRO rate 1 year later: 1 bCRO = 1.25 CRO (from staking rewards)John redeems 9.0909 bCRO on Argo 1 year later and gets 11.3636 CRO in return, netting an additional 1.3636 CRO which represents his staking rewards.
As mentioned above, so long as your CRO is staked and earning staking rewards, bCRO will constantly be accruing staking rewards. Our delegation strategy aims to minimize slashing risks, meanwhile our smart contracts will be undergoing thorough audits to ensure utmost security and safety of the protocol.
bCRO can be used across various DeFi applications on Cronos to earn additional DeFi yields. Find out more in our bCRO DeFi utility section