Liquid Staking Tokens
Solve the liquidity problem of staking crypto to secure blockchain transactions.
When you stake your cryptocurrency, it becomes illiquid, meaning you cannot trade or use it until you withdraw your staked funds. Liquid staking derivatives solve this problem by creating a token that represents your staked funds. Liquid staking tokens allow investors to earn staking rewards while also having the flexibility to use their funds for other purposes.
Liquid Restaking (LRT)
Liquid restaking is a process that allows users to stake their assets in a way that they can still be used for other purposes, such as earning additional rewards or participating in other protocols. This concept is particularly relevant in the Ethereum ecosystem, where it builds on the success of liquid staking platforms like Lido.
Context
Function
Deposit your staked funds into a smart contract, and the contract then mints new tokens that represent your stake.
Protocols
- Eigenlayer
- Lido
- Rocketpool
- Frax Share
- Ankr