Crypto Foundation - Staking and Liquid Staking

Liquid staking is quite a revolutionary mechanism within the defi ecosystem which offers a solution to some of the longstanding challenges associated with traditional staking. Unlike traditional staking, where locked-up assets remain illiquid and inaccessible for a period of time, liquid staking introduces a groundbreaking approach. It allows users to tokenize their staked assets, creating liquid and tradable assets while simultaneously participating in network consensus through staking validators. Yup, it’s a mouthful, but don’t worry! We’ll break it all down in the next section of this lesson. 

This innovation gives access to staking rewards, enabling investors to enjoy the benefits of both staking and liquidity of their assets which unlocks the capital’s potential for trading, lending, and liquidity providing. Liquid staking maximizes the utility of crypto assets and contributes significantly to the growth of the defi ecosystem AND will allow you as a staker to benefit from the staking as well as put it to work in other places. I like to call it double dipping. Let’s dive in.