Staking & Yield

When you stake PDP tokens, you're doing more than just locking them away — you're actively contributing to the security and growth of the platform. By staking your tokens, you participate in the protocol's revenue-sharing model. In return for your contribution, you earn a share of the platform's earnings, which come from revenue-generating activities for Paydax.

In 2024, staking rewards on leading decentralized finance (DeFi) platforms reached up to 18.5% with a staking ratio of 59%, indicating strong returns for participants. (Source: Blockchain News)

The exact yield varies depending on factors like platform demand, the overall growth of the protocol, and the participation rate of stakers. As more people participate in staking, the yields may become more competitive, but they continue to offer an attractive incentive for those locking up their tokens to support the network.

Paydax uses a tiered rewards structure to encourage users to stake more tokens. The more PDP tokens you stake, the higher the rewards you can earn. For example, a user staking 10,000 PDP might receive an annual return of 10%, which is equivalent to earning 1,000 PDP over a year. On the other hand, if you stake 150,000 PDP, you could receive rewards of up to 22% annually, meaning you could earn 33,000 PDP over a year.

This system rewards those who stake larger amounts, as their contributions help secure the platform and ensure its stability. By staking more tokens, users not only increase their rewards but strengthen the ecosystem as a whole.

By staking PDP tokens, users can generate passive income over time, with rewards distributed periodically. These rewards do not require active trading or management, making it an appealing option for those seeking to earn from their holdings. Additionally, staked tokens help secure the network and validate transactions, ensuring the platform operates smoothly. Stakers may also gain governance rights, which allow them to vote on protocol decisions, like voting on proposals to improve the platform.

The staking model within Paydax provides an incentive for token holders to engage with the platform. Offering tiered rewards based on the amount staked ensures that both small and large participants benefit, fostering long-term commitment and driving the growth of the ecosystem.