Liquid Staking
Staking your crypto while still being able to use it. You get a token representing your staked funds that you can trade or use elsewhere.
Example
Staking ETH through Lido and getting stETH in return. You earn staking rewards AND can use stETH in other apps.
Related Terms
Tools & Protocols
⚙️How It Works
- 1
Deposit
Stake your ETH with a liquid staking provider
- 2
Receive LST
Get a liquid staking token (stETH, rETH) representing your stake
- 3
Earn Rewards
Your LST value grows as staking rewards accumulate
- 4
Use in DeFi
Trade, lend, or provide liquidity with your LST
⚖️Liquid Staking Providers
| Feature | lido | rocket Pool | frax |
|---|---|---|---|
| Market Share | ~70% | ~10% | ~3% |
| Token | stETH (rebase) | rETH (value accruing) | sfrxETH |
| Decentralization | Medium | High | Medium |
| Minimum | Any amount | Any amount | Any amount |
🚀Getting Started
- 1Choose between rebase tokens (stETH) or value-accruing (rETH)
- 2Consider decentralization - don't put everything in Lido
- 3Check liquidity before staking large amounts
- 4Understand that unstaking may take days or require selling at a discount
- 5Explore using your LST in DeFi for additional yield