#Binance #HMSTR #Staking
What is liquid staking?
Liquid staking is a process in which users can stake (lock up) their cryptocurrencies to earn rewards while retaining the ability to use liquid assets.
Unlike traditional staking, where your funds are locked up for a certain period of time, liquid staking allows you to receive so-called staking derivatives – tokens representing the staked assets.
How it works:
🔵 You stake your cryptocurrencies (e.g. Ethereum or other PoS tokens) via a liquid staking platform.
🔵 In exchange, you receive derivatives, which are tokens linked to your staked assets.
🔵 These derivatives can be used in DeFi protocols, traded, borrowed, or provided as liquidity, while the original staked assets continue to generate rewards.
Liquid staking is becoming especially popular on platforms like Lido, where users can stake ETH and other cryptocurrencies while maintaining the liquidity of their assets.
