Liquid Stacking¶

Liquid staking refers to the tokenization of staked assets to allow them to be used for other purposes. When you stake your digital assets with a validator, these tokens can not be transferred or used directly because of the unbonding period that comes with staking.

As a remedy to this dilemma, liquid staking was created . It allows stakers to use their locked assets as collateral in other financial applications. In that way you don't miss out on possible investment opportunities or gains by trading.