# How to Stake PRL?

**Published by:** [Parallel](https://blog.parallel.best/)
**Published on:** 2025-05-01
**URL:** https://blog.parallel.best/how-to-stake-prl

## Content

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).🧭 Why Stake PRL?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 OptionsThere are two staking formats available:1. sPRL1 – Single-Sided PRL StakingStake only PRLNo exposure to impermanent lossVoting power: 1 PRL = 1 voteAvailable on Ethereum, Polygon, Base, SonicBest suited for governance participants and low-risk profiles.2. sPRL2 – PRL/wETH LP StakingProvide liquidity to the Balancer 80/20 PRL/wETH poolLP tokens are automatically staked on Aura, rewards sent to the DAOVoting power: x2.5 ParaBoost (based on PRL-equivalent value)Available initially on EthereumBest suited for users who want maximum governance influence and support PRL liquidity.🪙 How Rewards WorkParaBoost score determines how much of the protocol’s fees you receiveRewards are distributed every epoch (~30 days)Distributed in PAR stablecoin, claimable on Polygon PoSYou 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 ExitUnstaking starts a 1-epoch cooldown (30 days)You can exit immediately by paying a penalty:Starts at 50%Decreases linearly over timePenalties are sent to the DAO TreasuryTransfer of sPRL1/sPRL2 resets ParaBoost to 0📥 How to Stake (Step-by-Step)Go to the “Stake” tab on the Parallel dAppChoose between Stake PRL or Stake PRL/wETH LPSelect your chain (Ethereum, Polygon, etc.)Enter the amount to stakeApprove PRLConfirm and sign the staking transactionsPRL1sPRL2 🗳 How to Delegate Your Voting PowerOnce your PRL is staked (sPRL1 or sPRL2), you can delegate your voting power to any address, including your own. Step-by-step:Go to the Stake tab in the Parallel dAppScroll to the Your votes sectionClick on Change DelegateIn the modal:Paste the address of the wallet you want to delegate toOr select Delegate to Self if you want to vote with your own addressClick Delegate and confirm the transaction in your walletDelegating only affects your Snapshot voting power. You keep full ownership of your sPRL, your ParaBoost score, and your protocol rewards (in $PAR).🗳 Governance PowerVoting power is assigned based on ParaBoost score from the previous epoch.Proposal thresholds:Integration: 100k sPRL (ParaBoost)Governance: 200kImprovement: 300kTo publish a proposal on Snapshot, you need at least 100,000 sPRL (ParaBoost).⚠ Additional NotessPRL tokens are ERC-20 transferable, but ParaBoost resets on transferStaking contracts are audited (BailSec & Zenith)All funds are non-custodial and managed by the DAODApp I Discord I X I Docs

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