Liquid Staking
Staking crypto while receiving a tradeable token that represents your staked position.
intermediate
defi
Explained Simply
Liquid staking solves a key problem: normally, staked tokens are locked and can't be used. Liquid staking protocols like Lido (stETH) and Rocket Pool (rETH) give you a receipt token when you stake. This token earns staking rewards AND can be used in DeFi — lending, providing liquidity, or as collateral. It's essentially earning yield on your yield. The risk is that the liquid staking token could depeg from the underlying asset.
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