Liquid Staking

Liquid staking lets holders stake tokens to help secure a proof-of-stake network while receiving a tradable token that represents the staked position. That receipt can be sold, lent or used as collateral.

Related Terms

  • Finality

    Finality is the point at which a blockchain transaction can no longer be reversed or reordered. Networks reach it through different mechanisms and at very different speeds.

  • Liquidity Pool

    A liquidity pool is a reserve of two or more tokens held in a smart contract that traders swap against. The price shifts automatically as the ratio of tokens in the pool changes.

  • Proof of Stake

    Proof of stake is a consensus mechanism in which validators lock up the network's native token as collateral for the right to propose and confirm blocks.

  • Consensus Mechanism

    A consensus mechanism is the set of rules that lets a blockchain's independent nodes agree on one shared history. It decides which transactions are valid and in what order they are recorded.

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