Liquid Staking
Traditional staking works like this:
1) You stake your tokens
2) They become locked in the protocol
3) You earn rewards over time
The problem is that while the tokens are locked, you cannot use them anywhere else❗️
Liquid staking solves this limitation
How does it work? 🤔
You stake your assets
and receive a liquid token in return. This token represents your position in the protocol
The key advantage is that the token remains liquid
It can be:
— traded;
— provided as liquidity;
— used in various DeFi strategies.
📌 As a result, your assets keep generating yield while staying usable
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Post #327
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