Parallel DOT Liquid Staking Guide
Last week, Parallel Finance became the FIRST parachain to launch liquid staking on Polkadot network. Liquid staking is one of the novel DeFi products and it is an improvement over the conventional method of staking that requires users to lock away their assets over a period of time. Making them lose liquidity during that period and only rely on staking rewards. Parallel liquid staking, on the other hand, allows users to stake their DOT without losing access to the asset, making them stay liquid and allowing them to explore other varieties of DeFi investment options with the asset to help them compound their rewards.
Once a user stakes DOT, they receive a minted derivative version of it (sDOT) at a 1:1 ratio that can be utilized across other Parallel DeFi products like AMM and Money Market the same way DOT can be utilized. This gives users full control over their assets and gives them greater capital efficiency to amplify their yield — the first of its kind on Polkadot.
Parallel Liquid Staking pallet allow users to stake their assets early and longer and reward them with an APY as high as 14.5%. Users also have the opportunity to earn an additional return of up to an extra 60% PARA APR by lending their sDOT to our money market. This guide will walk you through how to use the new Parallel Finance liquid staking product.
First, you need to visit the DOT Liquid Staking Interface and connect your Polkadot.JS wallet to be able to use your DOT on the liquid staking pallet.
For ease of use, we have the stake and unstake tab made easy on the pallet.
How to Stake your DOT
- To stake DOT, enter the amount of DOT you’ll like to stake and hit the stake button.
*Note the staking fee, exchange rate, and the amount of minted sDOT.
2. Sign the transaction
Upon hitting the button, a sign transaction page will pop up on your screen. Enter your wallet password and click the “Sign the transaction” button.
Note: A transaction success button will pop up on the top right-hand corner of your screen if your staking is successful
Unstaking your DOT
- Click the Unstake tab and enter the amount of DOT you’ll like to unstake and hit the unstake button
2. As with all transactions, you will need to sign to confirm to receive the success message for unstaking your DOT.
Note: Unstaking your DOT requires a 29 day wait time.
3. Upon receipt of a transaction success message, you can click the “Pending Unstake” tab to check the total amount and the unbond time.
What Next
Since Parallel Finance runs a composable and interoperable ecosystem, you can use your minted derivative token — sDOT on other DeFi protocols in the Parallel Super Dapp suite such as the Money Market.
With this feature, you can lend your sDOT to the Parallel Money Market to earn additional yield in form of lending interest to help compound your rewards. You can also supply it to the Money Market as collateral to borrow another asset. The process is simple:
Visit the Money Market and click sDOT to lend it to the market on the Lend tab or click on sDOT on the Borrow tab to supply it as collateral to be able to borrow another asset e.g. DOT.
Parallel Finance is committed to ensuring users have greater capital efficiency. As such, apart from the lending reward — referred to as supply APY, you can also earn up to an additional 45–60 % PARA APY to help multiply your ROI.
About Parallel Finance
Parallel Finance is a user-focused DeFi protocol that has evolved into a hub for DeFi use cases and solutions. It features a highly secure suite of DeFi super dapps that include Staking and v2 Decentralized Crowdloan. The platform is committed to building a decentralized future that empowers the community to increase DeFi capital efficiency, security, and accessibility.
We are also one of the largest parachains in the Polkadot space with over $700M+ TVL and 200K+ active users, and we are backed by some of the most accomplished investors in venture capital and veterans of the financial services space, including Sequoia, Founders Fund, Coinbase, Polychain, etc.
Parallel Finance has a rapidly growing, close-knit team of 90+ professionals. Their backgrounds combine technology expertise with decades of experience in product management, finance, and marketing, coming from top organizations including The World Bank Group, Dash, Crypto.com, ChainLink, Meta, Polygon, Ledger, JP Morgan, Standard Chartered, Amazon, BlockFi, etc., and we’re still hiring.
Stay in touch with us.
Website: https://parallel.fi
Twitter: https://twitter.com/ParallelFi
Telegram: https://t.me/parallelfi_community
Discord: https://discord.gg/buKKx4dySW
