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Liquid staking enables the user to access liquidity while also staking their tokens.
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Most of the profitable means that DeFi users consider are earning through stakes.
DeFi has transformed the crypto market and has made its way into the global economy. There are surplus ways to generate passive income. But, most of the DeFi users consider staking the most beneficial way to earn.
One can contribute to the Proof-of-Stake blockchain as with traditional staking. But, besides being limited by the bonding period, users receive a receipt of stacked funds in the form of a liquid staking token or LST.
This LST can be used in other DeFi systems to generate additional yield and reward opportunities. This type of staking involves storing funds in DeFi escrow accounts. Users can still access the account which makes the protocol liquid.
In traditional proof of stake protocol, liquid staking would be done by depositing the funds in the Defi escrow account which runs
We współpracy z: https://www.thecoinrepublic.com/2023/09/16/liquid-staking-in-crypto-how-is-it-different-from-staking/
