Liquid Staking

The idea behind liquid staking is to enable people to stake without losing access to the liquidity of their tokens. This takes place through tokenization and issuance of on-chain representations of staked assets - derivative staked tokens - that are a claim on underlying staking positions.

In our opinion, liquid staking really shines in solving the protocol design problems of PoS networks:

Opportunity cost

With a fully liquid derivative token, users can freely participate in DeFi and generate another layer of rewards on top of staking yields. Users don’t have to choose between staking or depositing their liquidity into an AMM, lending protocol, etc. They can do both!

Unbonding period

Since derivative tokens can be immediately swapped for their underlying staked assets, users don’t have to wait for the regular unbonding period to unstake their tokens.

Reliance on a single validator

Diversifying across multiple validators minimizes exposure and serves as slashing insurance against malperformance of individual validator nodes. With our liquid staking solution, you can delegate your SOL to a multitude of validators rather than just one.