Liquid Staking

What is Liquid Staking?

Imagine you’re staking a token like ETH or AVAX to help secure the blockchain and earn rewards. Normally, that token gets locked — you can’t use it or move it while it’s staked. Feels a bit like putting your money in a safe with no key until time’s up.

How It Works

You still stake your token… but you get a new token in return — one that represents your staked asset and can be used across DeFi while your original keeps earning yield. It’s like:

• You lock your ETH to earn rewards

• You receive stETH (staked ETH) in return

• You can now use stETH in other DeFi strategies — lend it, swap it, farm with it!

Why People Love Liquid Staking

• Earn passive rewards just like regular staking

• Stay flexible — your assets aren’t “trapped”

• Use your staked tokens across DeFi to unlock more opportunities

What are the Risks?

Every superpower has its shadow, so here’s what to keep in mind:

• Smart contract risk: The platform holding your staked tokens could have bugs. Stick to battle-tested ones.

• Depeg risk: Your liquid staked token (like stETH) might temporarily lose value compared to the original — especially during high market stress.