Staking

You can deposit your PDP into the Stability Pool, which acts as a safety net for the system. When under-collateralized positions are liquidated, the Stability Pool absorbs the bad debt, and stakers receive a share of the collateral—often at a discount—plus extra rewards in the form of PDP tokens.

In DeFi, staking utility tokens for yield is popular. For example, staking governance tokens in protocols like Aave or Curve can earn users between 4% and 20% annual returns, depending on the platform and incentives. This system not only rewards users for helping to keep the protocol stable but also encourages more people to participate, making the ecosystem more resilient during times of market stress.