> For the complete documentation index, see [llms.txt](https://o2dao.gitbook.io/o2-dao-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://o2dao.gitbook.io/o2-dao-documentation/mechanisms/staking-o-o.md).

# Staking (O², O²)

## How does staking work?

By using our platform, you are able to stake your OTWO and receive sOTWO (staked OTWO) in return. Keep in mind that 1 OTWO will always be equal to 1 sOTWO and vice versa, the tokens can be unstaked at any time, there is no lock-up period. The incentive to stake your OTWO tokens is to receive dividends every 8 hours. Very simple and intuitive, it only takes a few clicks to stake your OTWO and start earning passive income. It is important to note that staking can be used as a passive, long-term strategy. With your OTWO token stake increasing over time, it basically slowly reduce your purchase price, for instance, if the market price of $OTWO is inferior to the price at which you bought your tokens, by staking your tokens long enough in our protocol, the increase of your sOTWO balance will outpace the fall in price at some point.

## (O², O²) = (3, 3)²

O2 rewards are compounding while OHM rewards are compounding. To put simply, if OHM's APY is 10,000% and O2's APY is also 10,000% (which is programmed), their combined APY will be 1,000,000%.

![](/files/uJizQvTT3qt5rBO70tmD)

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