The first streamlined Protocol for

Margin Staking

The staking economy is one DeFi’s primary sources of yield. It is also what
allows proof-of-stake blockchains to secure the network. Parallel’s margin
staking feature actually enhances the security of Polkadot, because it
removes the inherent competition between staking and lending.

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Stack yield with ease

Higher Yield

Margin staking allows you to combine low-beta yields and
hedge the risk and opportunity cost at the same time to
capture more yields with the same underlying capital.

Earn Higher Yield

Freedom to stake and lend

Stay Liquid

Margin staking allows users to stay liquid by borrowing against
the value of their future assets.

Earn Higher Yield

The most advanced and secure.

Insurance Pool

The conversion rate between like-kind assets tokenized
through Parallel is guaranteed by an insurance pool. This pool
also protects against the risk of liqudiation, if collateral dips
below the liquidation threashold due to an unfavorable
conversion rate.

Example

The price of xDOT falls below the expected, time-bound conversion rate, and a
user’s position was liquidated as a result, the protocol will use funds collected
by the insurance pool to make liquidated users whole.

Stake Insured

Full Transparency

Risk of Margin Staking

Interest Rate Risk Using Margin

Margin staking using like-kind pairs such as DOT and xDOT runs the risk of liquidation when the
interest on borrowing exceeds the collateral. At that point, the user’s loan can be liquidated.

Contract Risk

When you stake with margin, you incur a higher risk, because you are engaging with more smart contracts. When you stake without margin, you are engaging directly with the blockchain, and the risk is lower. In general, the more layers of contract exposure you have, the higher the overall risk of your position.