Hey @quantrava.
I would suggest delegating some time reading through abracadabra.money and their concept behind Lend/Borrow and collateral. As TOD is planned to be added as an asset for Trava Lending Pools, using staked version of TOD -> xTOD (rebasing TOD) for collateral would still grow in value or at least maintain the current value. Otherwise if TOD has to be unstaked in order to be Lended/Borrowed, it might decrease in value as it's not rebasing anymore, making Lend/Borrow feature somewhat irrelevant.
Leaving abracadabra.money useful links to read about the using rebase token as collateral concept more:
https://abracadabra.money/ https://docs.abracadabra.money/ https://docs.abracadabra.money/intro/lending-markets