Often abbreviated as “liquid staked tokens,” are blockchain assets that represent a user’s stake in a proof-of-stake (PoS) network while maintaining liquidity and fungibility. They allow holders to retain the benefits of staking, such as earning rewards and participating in network security, while simultaneously having the flexibility to trade or use the tokens without waiting for staking lock-up periods. These tokens are typically issued on secondary markets by specialized platforms, bridging the gap between the illiquid nature of traditional staking and the fluidity of cryptocurrency trading. Liquid staking tokens provide a novel way for users to balance the desire for staking rewards with the need for liquidity and trading opportunities within the rapidly evolving decentralized financial landscape. The Origins of All Staking: Proof-Of-Stake Proof-of-stake blockchains need members to put up a specific amount of money to act as collateral in order to validate transactions and build blocks. Crypto staking is the term for this. You can no longer spend your money on blockchain applications or services due to native staking, though. In essence, the currencies are secured to ensure that a blockchain validator behaves in the network’s best interest. It is critical that the network has access to these currencies … Continue reading What Are Liquid Staking Tokens?