What is Liquid Staking?

Liquid Staking is one of the most important developments in the Decentralized Finance world of digital assets. Liquid Staking allows users to stake their tokens and earn staking rewards without having to give up control of their tokens. Users receive a derivative token (often referred to a ‘shadow token’) which is like a receipt to the underlying staked asset, but can continue to be used like the underlying tokens for other purposes, such as trading, lending or providing liquidity, while still earning the staking yield.

This opens up incredible opportunities within the Ecosystem, and unlocks capital efficiency.

Last updated