Staking is the first thing crypto holders want to do when ever staking is initiated in Proof Of Stake Blockchains. I remember when I brought my DOT, I wanted to stake, but could not because the minimum DOT staking requirements was 20 DOT which then increased to 50 DOT.
Therefore as I was not having such large holdings of DOT, I was always compelled to be a passive holder of DOT , so I could not earn DOT staking yields through the process of staking.
However, with Parallel Finance, things have changed as I can earn staking rewards by just staking 5 DOT on Parallel Finance’s staking module.
Liquid Staked sDOT in Parallel Finance earns staking rewards plus can be utilised to earn further yields in DEFI
I assume all of the readers are aware of staking in POS Blockchains. This allows crypto holders to delegate their stake to validators of the network who in turn secure the network.
However, for holders of DOT like me who have not managed to stake on the Polkadot Network the usually known way, they can stake via Parallel Finance. As mentioned, a minimum of 5 DOT is needed for staking via Parallel Finance. The staked DOT will be distributed to well performing validators researched by the Parallel Finance’s team.
Meanwhile, stakers get sDOT, because this is liquid staking DOT, implying that the staked DOT can be used in Parallel Finance’s DEFI to earn more yields.
Let’s explore what yields liquid DOT stakers can earn in Parallel Finance
Liquid Staking rewards -
Stake DOT -> receive sDOT which will keep accruing 14.50% DOT staking rewards
This sDOT can be lent in Parallel Finance’s Money Market where one gets 13% Para rewards and 0.15% DOT rewards now.
This is a very safe risk averse way of earning more yields with sDOT.
Earn LP rewards by providing liquidity to DOT-sDOT pair
This pair is significant, because it will be possible to convert one’s sDOT to DOT by swapping sDOT to DOT in Parallel Finance, so obviously liquidity is needed for these assets and sDOT - DOT holders can provide liquidity to these pairs.
Liquidity providers will be rewarded with LP rewards, which they can lend in Parallel Finance’s Money Market and earn more yields.
Right now, LP-DOT/sDOT assets can earn 12% Para rewards when lent in the Money Market.
There are advantages of DOT Liquiding staking through Parallel Finance, let’s examine them?—?:
- DOT holders utilise their staked DOT, that is, sDOT in Parallel Finance’s DEFI platform and earn more yields. This has been covered in earlier sections of this article.
- sDOT can be instantly converted to DOT when needed through swapping. Else, it will take 29 days to unstake one’s staked DOT to get back the original DOT.
- Only 5 DOT is required for liquid staking in Parallel Finance where as atleast 50 or more DOTs are required to stake on the Polakdot ‘s Network to earn staking rewards.
- DOT staking is hassle free if done using the liquid staking module of Parallel Finance. Here, liquid staked DOT gets distributed to a performing group of validators selected after research by Parallel Finance’s team.
This makes DOT staking convenient for stakers, for otherwise one has to do research on performing validators and keep tabs on their block production performance, as slashing risks are there where stakes of non-performing or bad acting validators are slashed.
5. Furthermore, since slashing risks exist so in case slashing of a validator results in slashing of stake of sDOT holdlers, Parallel Finance will cover the loss. This point is mentioned in FAQ section which you can read under Parallel Finance’s Staking module?—?https://app.parallel.fi/#/staking 6. sDOT is very flexible, as one will be able swap sDOT to any other asset through Parallel’s swap module quickly. Otherwise to sell staked DOT, one has to unstake DOT, wait for 29 days to get unstaked DOT and then sell that DOT in the market.
So, earning DOT staking rewards through liquid staking in Parallel Finance is a great opportunity for DOT holders to utilise their otherwise idle DOT and get yields.
One of Parallel Finance’s goal is to be an easy to use platform for users, giving them the best yields possible for the assets they deposit in Parallel Finance’s DEFI. The protocol has started with DOT staking reward yields with Parallel Finance’s Liquid staking module.
Enter the Parallel Finance App herehttps://app.parallel.fi/Know about Parallel Finance -
https://parallel.fi/index.htmlhttps://twitter.com/ParallelFi Discort?—?https://discord.gg/DeyEntFTThis Author’s articles can also be read on these platforms —
https://peakd.com/@mintymile/postshttps://steemit.com/@mintymile/posts https://medium.com/@kikctikcy
