Liquid Staking
Liquid staking lets you stake tokens and receive a redeemable derivative in return — you keep earning staking rewards while the derivative can be traded or
Liquid staking lets you stake tokens and receive a redeemable derivative in return — you keep earning staking rewards while the derivative can be traded or used in DeFi. Lido’s stETH is the famous example. In short: stake, and stay liquid at the same time.
Why it matters
Liquid staking boosts capital efficiency, but it concentrates power: a single liquid-staking provider can come to control a huge share of a network’s stake — meaning the network’s “decentralized” validators are really one company’s warehouse. It’s a core tension W3D’s capital scores track.
Related terms
staking · DeFi ·
delegation