> For the complete documentation index, see [llms.txt](https://guide.rhea.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.rhea.finance/x-chain-guides/how-rhea-finance-works/staking.md). # Staking ## Concept xREF is the main staking contract (xtoken.ref-finance.near) on the platform. When you stake your REF, you effectively exchange your REF for xREF. Over time, you will always earn more REF by holding xREF tokens. {% hint style="info" %} There is no Divergence Loss when you stake REF for xREF tokens {% endhint %} Every swap executed on RHEA Finance generates revenue for the protocol. * 100% of the protocol fee will be used to buy back REF tokens, of which: * 75% will be transferred to the xREF contract (xtoken.ref-finance.near) and released linearly over time * 25% will be allocated to a Community/Provision treasury. This treasury will be used to fund grants and other community initiatives/programs ![](/files/YdMRN0EHG7j78Sz5v91g) ## Execution Like any liquidity provider, RHEA Finance collects its shares (16% of the total pool fee) in real-time and will be paid when it removes liquidity from the pool. Converting protocol LP tokens, resulting from the trading fees, involves the following actions: 1. Remove liquidity from pools 2. Withdraw corresponding tokens from RHEA Finance (v2.ref-finance.near) to the DAO (ref-finance.sputnik-dao.near) 3. Send tokens from the DAO to a specific execution account 4. Buy (back) REF tokens (with the execution account) 5. Send REF tokens to the staking contract (xtoken.ref-finance.near) The process happens on a quarterly basis. {% hint style="info" %} The first buy back involved as many as 35 DAO proposals {% endhint %} Because the conversion from LP to REF tokens happens on a quarterly basis, and because the tokens collected might be very volatile on the same period, there might be a significant difference between the daily 'observable' revenue and the 'realised' revenue, after conversion. Finally, rewards are being released linearly on a quarterly basis, and will have boosted markups for the first three years (subject to change): * Year 1: 2x * Year 2: 1.5x * Year 3: 1.2x * Year 4: 1x