Staking is the primary value accrual strategy of Citadel. Stakers stake their CTDL on the Citadel website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of CTDL 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 CTDL translates into a constantly falling cost basis converging on zero. This means even if the market price of CTDL drops below your initial purchase price, given a long enough staking period, the increase in your staked CTDL balance should eventually outpace the fall in price.
When you stake, you lock CTDL and receive an equal amount of sCTDL. Your sCTDL balance rebases up automatically at the end of every epoch. sCTDL is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sCTDL and receive an equal amount of CTDL. 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 CTDL (if any) will continue to receive rebase rewards.