What is Liquid Staking?
Liquid staking allows stakers to maintain liquidity of staked tokens by using alternative tokens, which they can use to earn additional yield through DeFi protocols. Liquid staking enables cryptocurrency holders to participate in staking without giving up control of their holdings. This changes the way users do staking. Projects such as Lido have introduced Liquid Staking to provide tokenization of staked assets in the form of tokens and derivatives.
