DeFiIntermediate

Liquid staking

Staking through a system that issues a transferable token representing a staking position or claim.

PLAIN-ENGLISH DEFINITION

In more detail

Ordinary staking can leave assets committed while they help secure a network. Liquid staking adds a token that can move between wallets or DeFi apps while the underlying position remains staked. That flexibility adds dependencies on the protocol's operators, redemption process and the token's market price.

IN THE WILD

How you might use it

"My ETH is still staked, but I can transfer the liquid staking token representing that position."

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By Crypto Dictionary · Published · Updated

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