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Liquid Staking

Staking an asset while receiving a tradeable token representing the staked position in return.

Liquid staking lets a participant stake an asset to help secure a proof-of-stake network while receiving a separate, tradeable token in return, representing their staked position and accrued rewards.

This lets a staker retain some liquidity and flexibility (able to trade or use the received token elsewhere) while their original assets remain staked, compared to traditional staking's typical lock-up period. See Kaavon's "Staking" glossary definition for the underlying activity this builds on.

Examples

A liquid staking participant can trade their received token even while their original assets remain staked.
Liquid staking trades some traditional staking simplicity for added liquidity and composability.