What is Liquid Staking and why is It so popular?
Join Liquidity Land and boost your staking and airdrop rewards by 15-50% in Tier1 chains and protocols.
In recent years, liquid staking has gained massive attention in the DeFi ecosystem. Unlike traditional staking, where your tokens are locked for a long period, liquid staking allows you to earn rewards while keeping liquidity and participating in other DeFi activities.
What is Liquid Staking
Traditional staking involves locking tokens (ETH, SOL, DOT) to secure the network and earn rewards.
Liquid staking works differently:
- You deposit your asset into a smart contract.
- You receive a derivative token (e.g., stETH, stSOL, rETH) that represents your staked asset.
- This token can be used in other DeFi products: liquidity pools, lending, or yield farming.
This way, you earn staking rewards and can use your asset elsewhere in DeFi simultaneously.
Why Liquid Staking is Popular
- Liquidity: Your asset remains liquid, meaning it can be sold or used in DeFi protocols.
- Dual income: Earn staking rewards + additional yield through lending markets or liquidity pools.
- DeFi participation: Liquid staking tokens can be integrated into yield aggregators, cross-chain protocols, and other DeFi applications.
How to Maximise the Liquid Staking Rewards?
In Liquidity Land, we connect liquidity providers with highly vetted DeFi protocols, offering an extra 15-50% higher yields and exclusive LP deals. The platform doesn't add any additional risks associated with it, you work directly with protocols and your rewards are received retroactively.
Examples of Liquid Staking Protocols on Liquidity.Land
- Superlend – Aggregates liquidity for staking and lending, enabling users to maximize returns from their assets. Earn + 300% Superlend Points Boost via Liquidity.Land.
- Hyperwave– Introduces liquid HLP (hwHLP), enabling users to earn from Hyperliquid’s liquidity provision while keeping assets flexible and usable across DeFi. [Earn +5% Hyperwave Points Boost via Liquidity.Land.] https://app.liquidity.land/project/Hyperwave
Conclusion
Liquid staking is popular because it combines steady rewards and flexibility. Unlike traditional staking, it doesn’t freeze your funds and allows combining strategies like staking + lending + yield aggregation.