10 eth at 5% yield (assuming fixed). After 1 year I have 10.5 ETH and the next year my reward will be based on the 10.5 ETH (so 5% of 10.5 = 0.525), and not the originally staked 10?
They are automatically compounded
Daily? Montly? Yearly?
daily. essentailly, The daily rebasing event would stake idle ETH
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