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What Is “Liquid Staking” and How Does It Differ from Solo Staking?

Solo staking requires a user to run their own validator node with 32 ETH and manage the hardware and software. Liquid staking allows users to stake any amount of ETH through a service provider or protocol.

In return, the user receives a "liquid staking derivative" (LSD) token, representing their staked ETH plus rewards. This LSD token provides liquidity and can be used in DeFi.

The key difference is the required capital, technical expertise, and the liquidity of the staked asset.

What Is ‘Liquid Staking’ and How Does It Address the ‘Lock-up’ Issue?
What Is the Difference between a Rebase Token and a Liquid Staking Token?
How Does Staking Differ from Mining in Terms of Hardware Requirements?
What Governance Model Is Required for a Liquid Staking Protocol Itself?