@felix445

Liquid staking protocols (e.g., Lido, Rocket Pool) issue tradable tokens (e.g., stETH) representing staked assets, solving PoS’s liquidity lock-up problem. Users earn staking rewards while retaining flexibility to trade or use tokens in DeFi. However, risks include smart contract bugs and depegging (e.g., stETH’s 2022 temporary deviation from ETH). As PoS adoption grows, liquid staking bridges the gap between security participation and capital efficiency.