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Crypto & Digital Assets

Staking

Also called: crypto staking, liquid staking, staking rewards

Staking locks tokens as collateral to help secure a proof-of-stake network, earning a share of new issuance and fees. The advertised yield is usually nominal: if the network is issuing new tokens to pay you, part of your return is dilution of everyone else rather than real income. Liquid staking issues a tradeable receipt token so the position stays usable, which is convenient and adds a layer of smart contract risk.

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