đź‘€From $ALEO to $pALEO: How to liquid stake on Pondođź‘€
Liquid staking addresses the challenge of illiquidity in traditional staking by allowing users to earn rewards without locking up their assets. Instead of being stuck with staked tokens, users receive derivative tokens that can be used across DeFi platforms for trading, lending, or yield farming.
Pondo, the largest TVL protocol on Aleo and part of Coinbase Learning Rewards, offers liquid staking on the Aleo Network. By staking $ALEO, users receive $pALEO, a token that represents staked $ALEO. Holding $pALEO allows users to access DeFi opportunities on platforms like Arcane while still earning staking rewards.
In this article, we'll explain what $pALEO is, its benefits, and how to acquire it.
What Can You Do with $pALEO?
$pALEO offers several benefits. Initially, 1 $pALEO equaled 1 $ALEO, but its value has increased to 1.06 $ALEO, and will continue to rise as staking rewards accumulate. After a year, converting $pALEO back to $ALEO will return your original amount plus any earned yield. Additionally, $pALEO is a liquid token, meaning you can trade or transfer it at any time. If you need to convert it back to $ALEO, the process is simple and straightforward.
How to Acquire $pALEO
To acquire $pALEO, first ensure you have $ALEO in a compatible wallet like Leo Wallet, Puzzle, or Fox Wallet. Then, visit the https://app.pondo.xyz/ or https://www.staking.xyz/ platforms and connect your wallet. Once connected, stake your $ALEO for $pALEO by selecting the amount and confirming the transaction. Afterward, you can easily check your balance in your wallet.
How to Unstake $pALEO
Unstaking $pALEO is easy. First, make sure you have some $ALEO to cover transaction fees. Then, go to Staking.xyz or Pondo and connect your wallet. Select the amount of $pALEO you want to unstake, and choose either the instant unstake option (with a 0.25% fee) or the standard method (which may take up to 3 days). Once the process is complete, your $ALEO will appear in your wallet.
Important Reminder
Avoid sending $pALEO directly to centralized exchanges like Coinbase, as they do not support it. Always unstake and convert $pALEO to $ALEO before transferring to any exchange, as $pALEO cannot be recovered once sent to unsupported platforms.