💧What is Liquid Staking?

An overview of liquid staking and its benefits within the Project Pi ecosystem.

Liquid Staking is a financial mechanism that allows users to stake their tokens to both support the network's security and earn rewards from validating the network, while still retaining liquidity.

Unlike traditional staking, where tokens are locked and cannot be used, liquid staking issues a token (i.e., stPLS) in return, representing the staked amount plus any rewards earned over time. This token (i.e., stPLS) can then be traded, sold, or used in decentralized finance (DeFi) applications, providing flexibility and liquidity to stakers.

Benefits:

• Flexibility: Access staked funds without unstaking, balancing network support and liquidity.

• Yield Opportunities: Participate in DeFi to boost returns.

• Security and Participation: Strengthen network security with broader staking participation.

• Inclusivity: Stake with smaller amounts, opening access to everyone.