Liquid Staking

Liquid staking is an innovative model of cryptocurrency staking that allows users to earn rewards for staking their assets while still being able to use those assets in other DeFi applications. In traditional staking, assets are locked, which limits their usage until the lock-up period ends. Liquid staking solves this issue by providing users with tokens that represent the staked assets (e.g., stETH for Ethereum), which can be used for trading, collateral, or participating in other DeFi protocols.

Key advantages:

• Increased liquidity: Users can continue earning staking rewards while also using the tokens for other operations.
• Flexibility: Assets are not fully locked, enabling participation in other investment opportunities.

How it works:

A user deposits their cryptocurrencies into a liquid staking platform and receives tokens that represent the staked assets. These tokens can be used for trading or other operations within the DeFi ecosystem, while still earning staking rewards.