Liquid Staking: staking ETH without locking up your capital.

One of the most popular innovations in staking on Ethereum is Liquid Staking. Traditionally, when you stake ETH, your tokens are locked and you cannot use them for other activities. Liquid staking solves this: when you deposit your $ETH into a liquid staking protocol (like Lido Finance), you receive in return a "liquid token" (for example, stETH). This token represents your staked ETH plus the rewards that accumulate. The best part is that you can use this liquid token in other DeFi (decentralized finance) applications, such as lending it, borrowing against it, or using it in liquidity pools, while still earning staking rewards! This allows you to maximize the utility of your capital without losing liquidity.

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