What is staking on Paribu and how does it work?
On Paribu, you can earn staking rewards by locking your crypto assets or Turkish lira for a specified period. During the lock period, your amount accrues a reward calculated based on the annual percentage yield. You can start the transaction with the Earn quick action button on the Wallet tab, and view your estimated rewards before the transaction.
What is staking?
Staking is a method by which you lock your asset for a specified period and earn a reward in return. On Paribu, this is offered through pools: you choose a pool whose conditions suit you and lock your amount. When the term ends, your reward is credited to you according to the pool's conditions; all the technical work in the background is handled by Paribu.
How to stake on Paribu
The staking flow on Paribu consists of three main steps:
- Asset selection: Supported assets are listed together with their annual percentage yield information.
- Pool selection: Different pools may be offered for each asset. Pools are listed in the following order: featured pools labeled High yield, available pools whose capacity is not full (sorted from highest to lowest annual percentage yield), Full pools, and pools you have Joined. Each pool card displays annual percentage yield and lock period information.
- Amount entry: You set the amount you will stake within the pool's minimum and maximum limits. Paribu shows the estimated reward by period based on the amount you enter.
To start the transaction, tap the Earn quick action button on the Wallet tab. For step-by-step instructions, see the how to stake on Paribu article.
Key concepts
Annual percentage yield
Annual percentage yield expresses the estimated annual reward of a pool as a percentage. For example, an 8% rate indicates that the amount you stake will earn approximately 8% reward when held in the pool for one year. The annual percentage yield is not fixed; it may vary depending on pool participation, network conditions, and the distribution mechanism. In pools subject to tax, the estimated reward shown is the after-tax net amount; you can see the gross and net rates separately in the pool details.
Withholding tax
In some pools (for example, Turkish lira pools), a statutory withholding tax is deducted from the reward you earn. In pools where this deduction applies, a Withholding tax row appears on the amount entry screen, and your estimated rewards are shown as the after-tax (net) amount. This row does not appear in pools that are not subject to tax.
Pool
A pool is a structure where amounts under the same asset and the same conditions are combined. Paribu offers staking processes on networks through pools. You may see three different labels on a pool card:
- High yield: A pool that offers a notable annual percentage yield compared to others
- Full: A pool whose capacity is filled; no new participants are accepted
- Joined: A pool in which you have an active position
Unlabeled pools are open to participation.
Lock period
Lock period determines how long the amount you lock will remain locked. All pools operate with a fixed term; the term varies depending on the pool. If you cancel before the term ends, the estimated reward is not earned. For detailed information, see the how to cancel an active staking position article.
Capacity
Each pool has a maximum amount it can collect. When capacity is filled, the pool is marked as Full and no new participants are accepted. When space opens up in full-capacity pools, the pool returns to open-to-participation status and the Full label is removed.
Assets I own filter
By using the Assets I own filter on the asset selection screen, you can limit the list to only suitable assets in your portfolio. When you turn off the filter, all supported assets on Paribu are displayed.
When do rewards begin to be calculated?
The moment you join the pool, your rewards begin to be calculated not immediately, but when the relevant pool's next reward period starts. The Timeline on the amount entry screen shows the investment time together with the reward start and end dates; you can also track the estimated withdrawal time on this timeline.
How does your position appear on your balance?
The amount you have locked is shown under the Staked sub-category within the locked balance card on the asset detail you open from the Wallet tab. The list of your active positions appears in the Pending tab of the screen that opens from the Transactions icon at the top of the screen. For details, see the portfolio overview article.
Important notes
The amount you lock stays in the pool throughout the term; during this period, it cannot be sold or used in another transaction. If you cancel before the term ends, only the principal is returned to your balance, and the estimated reward is not earned. For details, see the how to cancel an active staking position article.
Warning: Staking does not constitute investment advice. When choosing a pool, it is recommended to evaluate the annual percentage yield, the lock period, and your own risk profile together.
Frequently asked questions
Which assets can I stake?
Currently, you can earn rewards with Avalanche (AVAX), Chiliz (CHZ), Ethereum (ETH), Solana (SOL), and Turkish lira. Supported assets are listed with their annual percentage yields on the Choose your asset screen. The list may change over time as networks and pools are updated; different assets may be added or existing ones may be removed. You can always view the current list from within the app.
Is the annual percentage yield fixed?
The annual percentage yield may vary depending on the network's participation rate, pool capacity, and the distribution mechanism. The annual percentage yield shown in the pool details is the estimated annual rate valid at the moment you start the transaction.
Is tax deducted from my rewards?
In pools subject to tax (for example, Turkish lira pools), a statutory withholding tax is deducted from the reward you earn. In these pools, you can see the Withholding tax row on the amount entry screen, while the Estimated rewards field shows the after-tax net amount. No deduction is made in pools that are not subject to tax.
Can I withdraw my principal early?
Yes, you can cancel the position before the term ends. However, in this case, the estimated reward is not earned; only the principal is returned to your balance. For details, see the how to cancel an active staking position article.
When are my rewards reflected in my balance?
Reward distribution varies from pool to pool. In some pools, rewards are distributed in periods throughout the term; in others, they are credited to your balance in a single payment at the end of the term. You can view the relevant dates from the Reward end field on the pool detail screen and the Reward distribution time field in the active position detail.
Related articles
- How to stake on Paribu — Steps to earn staking rewards
- How to cancel an active staking position — Cancelling an active staking position
- How can I view my portfolio? — Viewing your portfolio
- How can I view and manage my open orders? — Viewing and managing open orders
- How can I view asset details? — Viewing asset details
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Paribu