Top 5 Liquidity Staking Programs You Should Keep An Eye Out For [Updated February 2022]
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Liquidity staking is a very powerful opportunity in decentralized finance. Rather than traditional staking, users can retain liquidity and explore additional revenue-generating opportunities. Finding the right program that suits your needs is key, and exploring multiple revenue streams through one provider can unlock tremendous returns.
Unlike the traditional concept of staking crypto assets for a certain period, liquid staking provides a welcome change. Locking crypto assets for a specific period prevents users from trading or selling them until that period ends. Liquid staking offers a liquid asset for users who contribute liquidity to the protocol, allowing them to explore other opportunities in the DeFi space.
Another benefit of liquid staking is how it bypasses any unstaking guidelines. Traditional staking lets users unstake before the period ends but forces them to pay the penalty. Moreover, it can take days or weeks for users to receive their initial deposit back. A liquid stake can be converted back to the original deposit at any time and often without any fees.
The Lido ecosystem has gained tremendous momentum since its introduction of ETH 2.0 staking. Although Ethereum is not a proof-of-stake network yet, users can pre-stake their Ether to earn rewards. Lido provides these services and controls nearly USD 6 billion in staked Ether. Users earn an APR of 4.6%, but that is not the essential part.
Users receive liquid assets based on their stake when staking Ether, Terra, or Solana through Lido. The liquid assets can be used across other decentralized protocols and projects,
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