Liquid Staking

Liquid staking is an evolution of traditional staking that increases flexibility and liquidity. It allows users to participate in staking without their assets being locked up. The main features are:

• Liquidity: Users receive liquid tokens (e.g., stTokens) representing the staked amount, which can still be traded or utilized.

• Flexibility: These tokens can be used on DeFi platforms to earn additional yields or used as collateral for loans.

• Risks: While liquid staked assets are theoretically secure, there are risks associated with the platform offering liquid staking, such as smart contract security vulnerabilities.