$PAR Staking Model Announced & Updates Ahead of TGE

🏛 Governance 🛡 Team
1

Over the past months, the Pareto community has been vocal about expectations around $PAR. The level of attention and feedback has been clear - and appreciated. It reflects how much conviction there is behind what we’re building.

At the same time, the last stretch of the market has been turbulent enough to remind everyone why rushing a token launch rarely pays off. We chose not to move just for the sake of “being live.” Instead, we continued to work on what actually matters - preparing the $PAR to launch in a way that is robust, stable, and resilient under all market conditions.

Today’s update is the first step in opening that up. We’re revealing the details of the proposed $PAR staking model, along with several updates on audit and launch preparations.

$PAR staking. A Commitment-Based Model for Long-Term Alignment

The $PAR staking model is built around a simple principle: reward long-term alignment, not short-term speculation.

In practice, this means that users who commit their liquidity and stay with the ecosystem over time receive stronger reward flows, deeper governance influence, and a more meaningful role in shaping Pareto’s future.

$PAR staking model ties together three core outcomes:

  • Deeper and more resilient $PAR liquidity, built through the 80/20 pool
  • Protocol reward distribution that favors users who remain involved over time
  • Stronger governance influence for long-term participants

How it works

$PAR Staking Model v2
$PAR Staking Model v22040Ă—1020 266 KB

  • The model uses a Balancer v3 $PAR–$WETH pool. To participate, a user adds liquidity to this pool by depositing both tokens directly: 80% $PAR and 20% $WETH
  • In return, Balancer Pool Tokens ($BPT) are minted, representing a proportional share of the pool
  • These $BPT are then locked inside Pareto ve8020 voting-escrow contract, which converts them into vePAR - a non-transferable token used for governance and protocol rewards
  • The voting and reward power of a vePAR position decreases gradually as the lock approaches its end date, unless the lock is extended

Key mechanics:

  • Longer lock (max 1 year) = higher vePAR rewards = stronger governance weight
    • Early unlock possible, with a penalty up to 50%
  • vePAR holders receive protocol rewards in $PAR. Additional tokens may be supported in the future as the ecosystem expands
  • Liquidity and governance are directly linked, strengthening the token’s market base

This creates a staking and governance layer where commitment defines influence, and long-term supporters benefit the most from Pareto’s growing onchain credit ecosystem.

Over time, the governance model may also extend certain governance rights to liquid $PAR holders.

We encourage community members to share their feedback - this is the moment to help shape the final version of the staking flow!

$PAR Token Audit Locked for This Year

The $PAR contracts have been undergoing extensive internal and external review.

We can confirm that the audit schedule is locked for this year, ensuring the entire token and governance stack is fully verified before TGE.

How Users Will Be Able to Acquire $PAR at TGE

At this stage, we can confirm three clear acquisition paths for retail participants at the token launch.

  • Former $IDLE token holders: as the final part of the migration from Idle Finance to Pareto, eligible $IDLE holders will be able to claim their $PAR allocation at TGE
  • Efficiency Points (EP) & Efficiency Credits (EC): both EPs and ECs will convert into $PAR. The exact conversion mechanism will be announced near TGE
  • Open market: $PAR will be available through centralized/decentralized exchanges (to be announced closer to the launch)

The Efficiency Campaign remains the most effective path to secure and grow your $PAR allocation ahead of TGE!

Season 2 is live, offering multiple participation boosters across Pendle, Euler, and Balancer v3 pool.

Full details: https://paragraph.com/@pareto/efficiency-campaign-season2

Every action in the campaign helps strengthen Pareto’s credit market infrastructure while rewarding early participation.

What Comes Next

As reiterated before, $PAR will go live once the final pieces are locked in - the round, market-making arrangements, and exchange listings. These elements are being completed in parallel with the remaining infrastructure work.

We will continue to share progress updates so the community remains fully aware of where we stand and what’s coming next.

Stay updated through:

4 Likes
2

Hi,

I believe this is a great model, though, I’m looking for clarification. The following are some questions that come to mind that I don’t believe I saw in the announcement.

  1. How often are rewards distributed (daily, weekly, monthly)?

  2. Are staking rewards fixed or variable over time?

  3. Are rewards automatically compounded, or do I need to claim them manually?

  4. How is the reward pool funded (emissions, protocol revenue, fees, etc.)?

  5. Is there an expected APY/APR range for staking?

  6. Does APY change depending on how much total PAR is staked?

  7. Do stakers receive a share of protocol revenue?

Thanks!

3

Hi,

  1. rewards will be weekly (we are using the Curve model under the hood)

  2. There will be a predefined emission initially, we will share a proposed emissions schedule later on

  3. Rewards will be in PAR for the first period so you will need to claim them and if you want to compound you would need to provide liquidity in balancer and lock the BPT token into the vePAR

  4. Rewards will be a reserved part of the total supply, no new token will be minted for this so the total supply is fixed, in the future other mechanism could be introduced like buybacks

  5. not yet

  6. yes

  7. not initially, but things may evolve in the future pending governance approval

1 Like