#SoftStaking Soft staking, often offered by centralized cryptocurrency exchanges (CEXs), is a flexible alternative to traditional on-chain staking. Unlike directly locking up assets on a blockchain for a fixed period, soft staking allows users to earn rewards on their holdings while maintaining immediate access to their funds.

Here's how it generally works: Users simply hold eligible cryptocurrencies in their exchange wallet. The exchange then utilizes a portion of these pooled assets for various activities, such as providing liquidity for trading pairs, lending, or participating in a project's official staking program. The profits generated are then distributed proportionally to the users as rewards.

The primary advantages of soft staking are its convenience and liquidity. Users don't need to manage private keys, understand complex staking protocols, or worry about unbonding periods that lock up their assets.