How Is the Concept of Staking Related to Financial Derivatives like Futures?
Staking is not a derivative itself, but the act of locking up capital for a return is conceptually similar to collateral in financial derivatives. In a futures contract, margin is required as collateral to cover potential losses.
Similarly, staked crypto acts as collateral to ensure honest validation. Liquid staking derivatives (LSDs) are a type of financial derivative that represents the staked asset, allowing it to be traded or used in DeFi.