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Staking FLT

Staking in Fluence through Parasail allows users to improve liquidity, mitigate risks, and simplify the staking process within the Fluence ecosystem. Users receive $pFLT, a liquid staking token that can be utilized in various DeFi applications or swapped on decentralized exchanges (DEXs). Using Parasail eliminates the concern of idiosyncratic risks tied to specific providers, and it also ensures that $FLT is automatically restaked whenever a capacity commitment concludes. Some key features and benefits include:

Automated Restaking​

Parasail automates the entire restaking process, removing the need for manual intervention. This not only reduces the operational burden on users but also ensures that assets are consistently and efficiently staked. By minimizing downtime, users can maximize their returns without having to monitor or manually reallocate their assets.

Risk Diversification​

Parasail pools the staked assets and distributes them across multiple providers, reducing exposure to the failure or underperformance of any single provider. This approach allows stakers to benefit from a diversified staking strategy, lowering the risk associated with individual providers and enhancing overall network security.

Pooling and Sharing Resources​

Parasail enables participants, including those with smaller holdings, to stake without needing to provide the equivalent resources of a full node. This shared staking model lowers the entry barrier for individuals who want to participate in staking but lack the substantial capital typically required. By pooling resources, operational costs and risks are distributed among multiple users, making staking more accessible and equitable.

Enhanced Liquidity​

Users receive $pFLT, a liquid representation of their staked $FLT. This token can be traded, used in DeFi applications, or swapped on DEXs, providing greater flexibility and liquidity compared to traditional staking models where assets are locked and illiquid. This liquidity enables users to maintain control over their assets and adjust their positions as needed without interrupting their staking activities.

Seamless Integration with DeFi Ecosystem​

$pFLT can be integrated into various DeFi protocols, unlocking new opportunities for earning, borrowing, and leveraging assets. By providing a liquid staking token, Parasail bridges the gap between staking and the broader DeFi ecosystem, allowing stakers to diversify their strategies and maximize returns.

To participate in Fluence staking through Parasail, users must deposit their $FLT tokens into the Fluence delegation pool. This contract manages the delegation of $FLT to various providers based on a set of predefined criteria such as provider performance, staking requirements, and revenue share.

Step-by-Step Guide to Staking $FLT:​

  1. Connect Wallet: Connect your wallet to the Parasail platform and navigate to the staking interface.

  2. Deposit $FLT: Enter the amount of $FLT you wish to stake and approve the transaction in your wallet.

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    2.1 Confirm: Confirm your stake amount.

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  3. Receive $pFLT: After the $FLT is successfully staked, you will receive $pFLT tokens representing an equivalent amount of $FLT staked.

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Rewards are not distributed to stakers immediately. Newly awarded FLT at each epoch vests (daily) over the following 6 months. 10% of the pFLT rewards will be withheld by Parasail as ongoing protocol fees.