What Is Liquid Staking?
💧 Unlocking Liquidity While Earning Staking Rewards
Liquid staking is a DeFi innovation that allows you to stake your crypto (e.g., ETH) and still use it while it’s locked in the network for rewards.
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✅ How It Works:
You deposit tokens into a liquid staking platform (like Lido or Rocket Pool).
In return, you receive a liquid token (e.g., stETH) that represents your staked assets.
This token can be traded, used in DeFi protocols, or held while your original assets continue earning staking rewards.
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🚀 Benefits:
Earn Rewards: Just like traditional staking.
Stay Liquid: Use your assets without waiting for the lock-up to end.
DeFi Ready: Put your liquid staking token to work in yield farms, lending platforms, or swaps.
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🧠 Example:
Stake 10 ETH → Receive 10 stETH
Your ETH is earning rewards, and your stETH can be traded, borrowed, or staked again.