# How to Stake PRL?

By [Parallel](https://blog.parallel.best) · 2025-05-01

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Parallel’s new staking system introduces two ways to stake your PRL:

*   **sPRL1** (single-sided staking)
    
*   **sPRL2** (LP staking)
    

Both mechanisms grant you governance rights and a share of protocol revenues, but with different levels of commitment, returns, and influence.

This guide explains how to stake, how unstaking works, and how rewards are distributed under [**Tokenomics v2.0 (PIP-46)**.](https://docs.mimo.capital/parallel-protocol/parallel-protocol/prl-parallel-governance-token/tokenomics)

🧭 **Why Stake PRL?**
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By staking PRL, you:

*   🗳 Gain **voting power** for protocol governance (Snapshot)
    
*   📊 Accumulate a ParaBoost score to receive **protocol fees**
    
*   🔐 Lock into a 30-day cycle (epoch) with **optional early exit** against a penalty
    

⚙ **Staking Options**
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There are **two staking formats** available:

### **1\. sPRL1 – Single-Sided PRL Staking**

*   Stake only PRL
    
*   No exposure to impermanent loss
    
*   Voting power: **1 PRL = 1 vote**
    
*   Available on **Ethereum, Polygon, Base, Sonic**
    

_Best suited for governance participants and low-risk profiles._

### **2. sPRL2 – PRL/wETH LP Staking**

*   Provide liquidity to the **Balancer 80/20 PRL/wETH pool**
    
*   LP tokens are automatically staked on **Aura**, rewards sent to the DAO
    
*   Voting power: **x2.5 ParaBoost** (based on PRL-equivalent value)
    
*   Available initially on **Ethereum**
    

_Best suited for users who want maximum governance influence and support PRL liquidity._

🪙 **How Rewards Work**
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*   **ParaBoost score** determines how much of the protocol’s fees you receive
    
*   Rewards are distributed **every epoch** (~30 days)
    
*   Distributed in **PAR** stablecoin, claimable on **Polygon PoS**
    
*   You can claim within **12 epochs (~1 year)** before unclaimed rewards return to the DAO
    

💡 Fees distributed to stakers: **15% of total generated protocol fees**

⏱ **Cooldown & Early Exit**
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*   Unstaking starts a **1-epoch cooldown (30 days)**
    
*   You can exit **immediately** by paying a **penalty**:
    
    *   Starts at **50%**
        
    *   Decreases linearly over time
        
*   Penalties are sent to the DAO Treasury
    
*   Transfer of sPRL1/sPRL2 resets ParaBoost to 0
    

📥 **How to Stake (Step-by-Step)**
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1.  Go to the **“Stake” tab** on the Parallel dApp
    
2.  Choose between **Stake PRL** or **Stake PRL/wETH LP**
    
3.  Select your chain (Ethereum, Polygon, etc.)
    
4.  Enter the amount to stake
    
5.  Approve PRL
    
6.  Confirm and sign the staking transaction
    

### **sPRL1**

![](https://storage.googleapis.com/papyrus_images/53d50d40bafb97853dba98704384ff29.png)

### **sPRL2**

![](https://storage.googleapis.com/papyrus_images/967216311d531352515b8e1bc7ce2e33.png)

🗳 **How to Delegate Your Voting Power**
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Once your PRL is staked (sPRL1 or sPRL2), you can delegate your voting power to any address, including your own.

**Step-by-step:**

1.  Go to the **Stake** tab in the [Parallel dApp](https://app.parallel.best/stake)
    
2.  Scroll to the **Your votes** section
    

![](https://storage.googleapis.com/papyrus_images/c729da5c8a2d4a37d535e8c9c5ddd3c4.png)

3.  Click on **Change Delegate**
    
4.  In the modal:
    
    *   Paste the address of the wallet you want to delegate to
        
    *   Or select **Delegate to Self** if you want to vote with your own address
        
5.  Click **Delegate** and confirm the transaction in your wallet
    

_Delegating only affects your Snapshot voting power.  
You keep full ownership of your sPRL, your ParaBoost score, and your protocol rewards (in $PAR)._

🗳 **Governance Power**
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Voting power is assigned based on **ParaBoost score** from the **previous epoch.**

*   Proposal thresholds:
    
    *   Integration: 100k sPRL (ParaBoost)
        
    *   Governance: 200k
        
    *   Improvement: 300k
        

To publish a proposal on Snapshot, you need at least **100,000 sPRL (ParaBoost).**

⚠ **Additional Notes**
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*   sPRL tokens are **ERC-20 transferable**, but ParaBoost resets on transfer
    
*   Staking contracts are **audited** ([BailSec & Zenith](https://docs.mimo.capital/parallel-protocol/resources/security-audits))
    
*   All funds are **non-custodial** and managed by the **DAO**
    

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*Originally published on [Parallel](https://blog.parallel.best/how-to-stake-prl)*