Ape Staking Guide
High level guide for all Ape Staking related products
Last updated
High level guide for all Ape Staking related products
Last updated
Parallel has integrated Ape Staking directly into its lending protocol. Users with BAYC/MAYC/BAKC/$APE can simply borrow what they need for staking and enjoy gas-free auto-compounding that maximizes their yield.
Parallel currently offers three methods of staking in the Ape ecosystem:
Parallel ApeCoin Pool - Stake your APE to this pool and Parallel will automatically claim and compound your staked APE coin at regular intervals.
NFT Staking Pool - Stake your BAYC/MAYC/BAKC NFTs to benefit from regular auto-compounding to Parallel's ApeCoin Pool.
Share Pool - Pair your assets with those of other users to split rewards, with rewards auto-compounding in the ApeCoin Pool.
Each staking method has its own advantages.
For users who are simply holding $APE without any NFTs:
ApeCoin Pool lets users stake their $APE and auto-compound it. This compounding $APE ($cAPE token) can also be lent on the Money Market for more yield. The benefit of this staking method is that users can start earning yield instantly and even earn extra yield from lending.
Alternatively, users can use the Share Pool with their ApeCoin to customize their desired yield by pairing up with other users willing to offer their NFTs for a portion of their staking rewards. Share Pool is more attractive for users looking for stable yield as the return is set up by the user.
For users holding BAYC/MAYC/BAKC:
The NFT Staking Pool allows users to stake $APE or borrow $APE from the Money Market using their NFT as collateral (no liquidation risk unless users borrow more than their staking position). Rewards are automatically compounded via ApeCoin Pool, maximizing yield. For users borrowing $APE with their NFT, rewards repay the debt to minimize interests.
The Share Pool enables users to set up "Listings" to stake with other assets in exchange for a portion of the reward. Users can specify the reward they seek or accept other users' offers and stake together. Rewards are automatically compounded. Share Pool is attractive to users seeking stable yield without borrowing against their NFTs.
To deposit your ApeCoin and have it automatically compound at regular intervals, go to the Parallel ApeCoin Pool under Ape Staking and deposit any desired amount.
You can increase your yield by supplying your compounding Ape ($cAPE) to the money market, where it will accrue interest on top of the rewards you receive from staking. If you prefer not to do this, you can turn off the toggle at the bottom to receive the $cAPE tokens directly in your wallet.
The ApeCoin pool compounds every time a new transaction of ApeCoin is deposited into it. The frequency of compounding increases as more people use the ApeCoin pool. You can find the exact auto-compound history on the Ape Staking page.
When using ApeCoin Pool, there are two components of yield:
To withdraw your tokens from the staking pool, go to the Withdraw tab of the ApeCoin pool. From there, you can select the amount of tokens you want to withdraw, either from your wallet or from Lending. Withdrawing from the pool will convert your compounding Ape tokens ($cAPE) back into ApeCoin, which you can continue to hold or sell on a CEX/DEX.
Although BAYC/MAYC/BAKC have very specific staking limits, rewards generated from your NFT can actually be reinvested into the ApeCoin staking pool via Parallel ApeCoin Pool. This works by regularly harvesting rewards from your NFTs and staking the generated rewards into the ApeCoin Pool, which in turn is also automatically compounding.
This approach ensures maximum capital efficiency because every token you have generates rewards instead of sitting idle.
If you hold BAKC along with your BAYC/MAYC, you can supply the BAKC to be paired with your BAYC/MAYC. The BAKC can then be staked on Parallel, just like the other NFTs.
Due to the way the BAKC staking is designed, user MUST use the Parallel to transfer their BAKC stake and NOT WITHDRAW FROM HORIZEN DIRECTLY. Doing so will result in the loss of all the staked $APE of the BAKC.
If you have encountered this issue, please reach out to our community manager on Discord. Our team can assist in the recovery of the funds.
BAYC compounds when both the total unclaimed rewards exceeds 250 APE and when the individual NFT has over 80 APE rewards unclaimed.
MAYC compounds when both the total unclaimed rewards exceeds 100 APE and when the individual NFT has over 30 APE rewards unclaimed.
BAKC compounds when both the total unclaimed rewards exceeds 50 APE and when the individual NFT has over 20 APE rewards unclaimed.
Users who borrow $cAPE to stake must pay interest on the amount borrowed. Unfortunately, borrowing interest compounds and becomes increasingly expensive over time. Therefore, it is important to pay back as much of the borrowed amount as possible to minimize interest.
Auto-Repay and Auto-Sell were developed specifically to help users manage their borrowed positions by using rewards generated from their staking to repay their outstanding debt at every compounding. Users can also select a specific percentage of their rewards to sell to USDC, allowing them to take profit without any manual actions.
Auto-Repay and Auto-Sell work in the following sequence:
Sell rewards to USDC based on the user-specified auto-sell percentage.
Repay outstanding debt if the borrowed $cAPE is greater than 0.
Compound the remaining amount.
For example, if a user has chosen 20% Auto-Sell, then for every 100 $APE in rewards, 20 $APE is sold to USDC, and the remaining 80 $APE is used to repay their outstanding debt.
Auto-Repay and Auto-Sell can be set up under NFT Staking Pool.
To use Auto-Sell, enter the amount you wish to sell. Any remaining amount will be used to Auto-Repay your outstanding debt. For instance, if you set the Auto-Sell percentage to 30%, 30% of your reward will be converted to USDC, while the remaining 70% will be used to repay your debt.
You can find your outstanding borrowed position under "My Borrowed Position" in the Lending tab.
To release a staked position, simply click on the Unstake button. This will release the position and return $APE to your wallet.
If you originally borrowed to stake, please stake your $APE into the ApeCoin Pool without supplying it to Lending. This will allow you to receive the $cAPE token necessary to repay your outstanding debt.
Since your staked $APE tokens contribute to your health factor (a measure of the likelihood of liquidation), borrowing to stake poses no liquidation risk. If the NFT value significantly drops, Parallel will automatically unstake your tokens and use them to rebalance your health factor.
For users who do not want to borrow against their NFT, Share Pool provides a stable yield without requiring the user to manage their own borrowed positions. While it may take longer to start staking (ApeCoin Pool and NFT Staking Pool allow for instant staking), Share Pool offers more flexibility and customization for users who want more control over their staking.
Additionally, Share Pool automatically compounds rewards, unlike other peer-to-peer staking offered by other platforms. Using Share Pool incurs no platform fees, and Parallel currently covers all gas fees for compounding (for a limited time). Users offering their ApeCoin can also use their compounding ApeCoin to pair, allowing them to earn yield while waiting for a match, maximizing their capital efficiency.
There are two ways to use Share Pool.
You can either join existing listings created by other users, which allows you to immediately start staking by accepting terms created by other users. During the process, you will be asked to confirm which BAYC/MAYC you will be using or whether you will be using $APE or $cAPE (compounding ApeCoin). Once the transaction is confirmed, you will instantly begin staking with the other user.
If none of the existing offers are suitable, you can create your own. Click "create" in the column with the assets that you want to offer, and input your desired parameters. Once the offer is created, other users will see it.
All $APE being offered will first be deposited into the ApeCoin pool. This ensures that all ApeCoin will continue to earn yield while the offer is active and waiting for other users.
You can find all pending and active staking positions under "My Position."
Pending Rewards represent the total pending reward for the entire pairing, including the amount that belongs to your co-staker, and it has yet to be harvested from staking.
After the rewards have been harvested and compounded, they will be displayed on the right as "Unclaimed Rewards," which represents the rewards that have been harvested and compounded and are available for you to claim.
All users receive compounding rewards from the single-sided ApeCoin Pool. You can find this information on the overview page under "Compound APY for ApeCoin Pool."
For users who also supply their $cAPE to receive additional yield through lending, the supply APY can be found under the "Lending" section. The tooltip also provides the effective APY, which is the total APY that takes into account both the compounding APY and the supply APY.
Currently, staking with credit is supported in the NFT Staking Pool. To stake with your chosen BAYC/MAYC/BAKC, simply click "Stake" and input the desired amount under "Borrow from $cAPE pool." This allows you to stake without owning ApeCoin.
To do this, select the BAKC you wish to stake, choose which BAYC/MAYC you wish to pair with the BAKC, and indicate the amount of $APE you have or wish to borrow.
