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Syde Protocol Syde Protocol @sydefi · 1.62K subscribers
Post #327 184
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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