Liquid Staking

Liquid staking enables users to stake their native tokens without locking them up for a specific period. This is accomplished by providing users with a liquid token in exchange for their staked tokens. The liquid token can then be used in various DeFi applications, including lending and borrowing. When users want to withdraw their tokens instantly, they can do so by swapping the liquid token for the native token on a decentralized exchange (DEX).

Benefits of liquid staking include:

• Liquidity and Flexibility: Liquid staking allows token holders to earn rewards and participate in network security while retaining the flexibility to trade or use their staked assets anytime. It eliminates choosing between staking for APR and participating in DeFi activities.

• Improved Network Security: Liquid staking encourages more token holders to stake their assets, enhancing overall blockchain network security.

• Capital Efficiency: Liquid staking is a more capital-efficient solution for blockchain projects and DeFi applications, as they don’t need to compete with the native staking yield.