Liquid Staking

What is Stader?

Stader is a non-custodial, smart contract-driven staking platform that facilitates easy discovery and utilization of staking solutions. It acts as an essential staking middleware infrastructure for various Proof-of-Stake (PoS) networks, catering to retail cryptocurrency users, exchanges, and custodians.

What is liquid staking?

Liquid staking is a mechanism within the decentralized finance (DeFi) space that allows users to stake their cryptocurrency to earn rewards while retaining liquidity of the staked assets. Unlike traditional staking, where the staked funds are locked and inaccessible for a defined period, liquid staking provides a tokenized version of the staked assets. This means users can still buy, sell, trade, or use those assets, making them more flexible and convenient. Liquid staking offers the dual benefit of better rewards through staking and the ability to continue utilizing the staked funds in other

What are the benefits of liquid staking?

Staking rewards: Liquid staking enables you to get auto-compounded rewards from staking your crypto tokens anytime. Enhanced liquidity: You can access staking rewards anytime by converting your tokens into liquid tokens, avoiding lock-up periods. You can freely trade or use these liquid tokens in DeFi protocols and unlock additional rewards on top of staking rewards. Liquid staking is a great option to enjoy flexibility and get staking rewards without locking up your tokens.

Which cryptocurrencies can be used for liquid staking?

Tokens eligible for Liquid Staking are the native tokens of Proof-of-Stake blockchains. Stader is available on some of the most popular ones, such as Ethereum, Polygon, Hedera, BNB, Fantom, Near, and Terra 2.0.

How much rewards can I get through liquid staking?

Liquid staking enables you to access your staked tokens without locking them up. The potential rewards achievable through liquid staking may vary from one platform to another and from one network to another. To know more about the rewards you can get for each blockchain on Stader, you can visit that respective blockchain’s dApp, where you can view the staking rewards percentage and the additional DeFi options available for that particular blockchain.

What are the risks associated with liquid staking?

The most common risks associated with liquid staking include: Network risk: Risks related to the specific protocols and networks used in liquid staking can influence the safety and reliability of the staking process. Market risk and volatility: The value of liquid tokens can fluctuate based on market conditions, affecting the overall rewards and liquidity. Smart contract risk: Liquid staking relies on smart contracts. These could be vulnerable to hacking or technical issues in certain unlikely scenarios. It is important to measure the risk-reward aspect of liquid staking before deciding whethe

Is liquid staking secure?

Liquid staking carries security risks such as smart contract vulnerabilities, market volatility, and technical and protocol risks. Before participating, users should conduct thorough research, understand the risks, and review security audits to ensure a safe staking experience. A reliable staking provider should implement proactive security measures, including on-chain monitoring, to safeguard your digital assets. For instance, at Stader, we prioritize the safety and security of your liquid staking tokens by implementing comprehensive measures such as security best practices and multisignature

How can I get started with liquid staking? What are the steps involved?

The end-to-end steps in the liquid staking process are as follows: Step 1: Transfer your crypto tokens to any preferred wallet such as Metamask, Ledger, Coinbase Wallet, etc. Step 2: Select your preferred liquid staking platform, such as Stader Labs, and the network/blockchain’s native asset that you want to stake in, such as Ethereum, Polygon, Binance, etc. Step 3: Connect your wallet to the platform and enter any amount of tokens that you are interested in staking. You will be able to view the estimated liquid tokens that your stake amounts to and the associated gas fee of the transaction. S