Skip to main content

How Does Liquid Staking Provide Flexibility to Stakers?

Liquid staking allows users to stake their cryptocurrency while simultaneously receiving a liquid, tradeable token that represents their staked assets and accumulated rewards. This token can be used in other DeFi protocols, providing liquidity and utility that traditional staking locks away.

It solves the capital inefficiency problem of standard staking.

What Is “Liquid Staking” and How Does It Affect Token Utility?
What Is a Liquid Staking Derivative (LSD) and What Risk Does It Introduce?
Explain How a Yield-Bearing Token Is an Example of DeFi Composability
Which Proxy Standard Is Generally Preferred for New DeFi Protocols and Why?