# Stakepools

Stakepools on HeadStarter offer innovative crowdfunding avenues for projects participating in the HeadStarter accelerator program. These mechanisms leverage DeFi yielding products, such as HBAR liquid staking, to generate yields that support project funding while rewarding early backers. Participants delegate their principal's yield to the project and accrue project points.

**How Stakepools Work - HBARX Example**

**Staking Process:**

* Users delegate HBAR to a project's stakepool.
* The HBAR is staked towards Stader’s HBARX token, generating yields.

**Yield Retention:**

* Projects retain the staking yields in HBAR.
* Users receive synthetic tokens / points proportional to their yield contribution.

**Token Claims:**

* Synthetic tokens / points can be claimed against project tokens as per the vesting schedule.

**Example:** A user delegates 100,000 HBAR to TokenA’s stakepool and locks it for one month. With a current HBARX reward of 9.5% APY (0.8% per month), the user generates a yield of 800 HBAR. In exchange, the user receives a predefined amount of phTokenX, which is claimable based on TokenA’s vesting schedule or tradable on DEXs.

**Conclusion**

Stakepools on HeadStarter provide flexible and rewarding ways for users to support projects while earning synthetic tokens. These innovative crowdfunding methods enhance project funding and offer significant benefits to both projects and participants.
