# Creating value
### Bonding
Bonding is one of the ways in which ParrotDAO generates profits. The protocol will sell bonds of other tokens like MIM for discounted PARR tokens, which will then be vested for gradual release to the bonding party. This allows full-time investors to actively manage their PARR portfolio and generate significant rewards over time whilst also supporting the growth of the ParrotDAO by financing its liquidity and facilitating more upwards price movement.
### Staking
Staking is an integral part of the ParrotDAO. Investors will stake their PARR, locking it into the ecosystem and receiving compounding rewards in sPARR (which will always be exchangeable for PARR at a 1:1 ratio) generated by bond sales. Over time, the amount of PARR owned by stakers will increase, bringing more profit and reducing exposure risk. Staking PARR becomes less risky and more profitable over time since an increasing share of PARR will protect investors from negative price action, and given that the protocol ensures a price floor of 1 PARR per MIM, staking for long enough will guarantee profit.
Staking locks your PARR and gives you an equal balance of sPARR, which compounds automatically. To unstake, sPARR is burned for an equal balance of PARR.
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