Liquid Staking
Staking tokens through a protocol that issues a liquid derivative token representing the staked position.
In-Depth Explanation
Liquid staking (Lido's stETH, Rocket Pool's rETH) lets users stake while maintaining liquidity. You deposit ETH, receive a liquid token that accrues staking rewards, and can use that token in DeFi. This unlocks capital efficiency but adds smart contract and depeg risk layers.
Related Terms
Staking
Locking tokens in a protocol to earn rewards, secure a network, or gain governance rights.
Liquid Staking Token
LSTA token representing staked assets that remains liquid and usable in DeFi while the underlying earns staking rewards.
Restaking
Using already-staked assets to simultaneously secure additional protocols or services, earning multiple yield streams.
More in Yield
View all →Mercenary Capital
Capital that moves between protocols purely to chase the highest incentives, with no loyalty or long-term commitment.
Annual Percentage Yield
APYThe annualized return on an investment accounting for compound interest.
Annual Percentage Rate
APRThe annualized return on an investment without accounting for compounding.
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.