What Is the Difference between Proof-of-Stake (PoS) Staking and Liquidity Pool Staking?
PoS staking involves locking a token to secure the network and validate transactions, earning native protocol rewards (often newly minted tokens). It directly contributes to the blockchain's security and consensus.
Liquidity pool staking (yield farming) involves depositing two assets into an Automated Market Maker (AMM) to provide trading liquidity, earning trading fees and often additional token rewards. PoS is for security; LP staking is for market efficiency and trading.