How to Earn 20% USD Return
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Once users have Parity Dollars, they can stake them in the USD staking contract, to immediately start earning the protocol’s baseline yield of 20% (30% for the first $5m in TVL).
Once users are in the dApp's USD staking tab, they will see the following interface:
Stake Amount Enter the amount of PUSD you want to stake via the USD Yield option. Once staked, you receive sPUSD, a liquid staking token. sPUSD can be used as collateral across Solana DeFi, and you can seamlessly switch between PUSD and sPUSD with no fees. Keep in mind, you only earn rewards while holding sPUSD, not PUSD.
Exchange Rate This shows the exchange rate between sPUSD and PUSD. sPUSD is an accumulating token that grows in value according to the USD Staking APY. As the exchange rate increases, your rewards grow. For example, if the exchange rate was 1:1 on January 1, 2024, and the APY is 30%, by January 1, 2025, the rate would be 1.3, meaning each sPUSD would be worth 1.3 PUSD.
sPUSD Amount This shows how many sPUSD tokens you will receive for the amount of PUSD you stake. Since sPUSD is an accumulating token, its value is higher than $1, meaning you will receive slightly fewer sPUSD tokens than the PUSD you input.
APY Yield This is the annual percentage yield (APY) you earn by holding sPUSD. The APY directly influences the growth rate of the exchange rate between sPUSD and PUSD.
Multiplier The protocol’s yield multiplier allows early users to benefit from an increased APY. For example, if the baseline APY is 30% and the multiplier is 3x, your effective APY becomes 90%. The multiplier ranges from 1x to 5x and is based on the ratio of Parity Token staking to USD Yield staking. A 1:1 ratio results in a 2x multiplier, and a 2:1 ratio gives a 3x multiplier. The multiplier is a temporary feature for early adopters.
Switch Between Staking/Unstaking This button lets you toggle between staking and unstaking modes. If you want to unstake, sPUSD will be converted back into PUSD at the displayed exchange rate with no fees and immediate availability of funds.
Switch Between Staking Options You can toggle between USD Staking and PT-Staking options here.
Switch Between Staking and Minting Use this button to switch between staking options and the mint-redeem interface.
