# Staking

### What is staking?

Staking an Ante Test signals trust in the tested guarantee, putting your money where your mouth is!
If the test continues to pass, you can potentially earn rewards over time.
However, if the test fails, you will lose your entire stake.

### How do staker rewards work?

Challenger capital undergoes continuous decay over time (by default, this is ~100% of challenger capital per year). This decay is allocated to stakers and is automatically added to your stake amount. Stakers are rewarded over time for their continued trust
Potential rewards vary with pool activity, but as a rough estimate,
$potential\,rewards \approx \frac{stake_{user}}{stake_{total}} \cdot challenge_{total}\cdot \left(1-(1-decay\,rate)^{n}\right)$
Note: if there are no challengers in the pool, no decay rewards are generated.

#### Example:

Take the following scenario:
\begin{align*} \text{your stake} &= \text{1 WETH} \\ \text{total stake} &= \text{20 WETH} \\ \text{total challenge} &= \text{2 WETH} \\ \text{decay rate} &= \text{20\% per year} \end{align*}
\begin{align*} potential\,rewards &\approx \frac{\text{1 WETH}}{\text{20 WETH}} \cdot \text{2 WETH} \cdot \left(1-(1-0.20)^{1}\right) \\ \\ &= \text{0.02 WETH over 1 year} \end{align*}