How Do Financial Derivatives like Futures Contracts Interact with PoS Staking Rewards?
Derivatives can be used to hedge the price risk of the staked asset while still earning the staking reward. For example, a staker can sell a futures contract on their staked asset to lock in a price, effectively separating the yield (staking reward) from the capital's price volatility.
This allows for a more predictable return on the staked capital, which is a form of yield-enhancement strategy.