Liquid Staking Guide
Parallel liquid staking is one of the most decentralized staking protocols of any DeFi platform as it allows users to have full control over their assets and gives them great capital efficiency to earn additional returns.
When the user deposits DOT or KSM to the staking pool, they will receive sDOT or sKSM representing their staked asset based on the exchange rate. The staking pool compounds the reward automatically, which incentivizes the user to stake early and longer.
After a user receives sDOT or sKSM, they could use it in the following scenario:
- Supply it to the money market to earn double interest
- Use it as collateral to borrow other assets.
Staking allows Parallel users to stake assets and receive rewards according to the APY percentage at that time.
Staking and unstaking are made easy and found in our staking tab.
1. Select the amount of DOT or KSM you want to stake or unstake
*Note the fees and rate, and hit the stake button.
2. Sign the transaction
*Note the new balance for your total sDOT or sKSM
3. Unstaking, you will see the mint fee as well as the wait time.
As with all transactions, you will need to sign to confirm to receive the success message for staking or unstaking your DOT or KSM.
You can use your minted sDOT or sKSM as you see fit on the money market as explained in the Purpose section of this guide.