From Lock-Up to Liquidity: The Evolution of Staking

The staking landscape has undergone a significant transformation with the advent of liquid staking. Traditionally, staking required locking up crypto assets to secure blockchain networks, which limited their liquidity and usability. Liquid staking changes this paradigm by allowing stakers to receive Liquid Staking Tokens (LSTs) that represent their staked assets. These LSTs can be freely traded, used in DeFi protocols, or sold, providing continuous liquidity while still earning staking rewards. This article traces the evolution of staking, highlighting how liquid staking enhances asset flexibility and utility, thereby offering a more dynamic and profitable approach to participating in blockchain networks.