Staking is a core component of decentralized finance (DeFi). It means that users typically get rewarded between 4% – 8% for locking up their coins. The current banking model no longer offers any real form of interest for deposits, so the benefits of this kind of staking are clear and obvious, as it rewards people for their contributions instead of taking from them. But Liquid Staking takes it one step further. Liquid Staking was initially created by Ankr, a Web3 infrastructure firm that helps blockchain startups grow and expand together. Ankr further offers a seamless point of entry into Web3 and DeFi with a large suite of protocols. While the benefits of DeFi are obvious from the perspective of traders, investors, and entrepreneurs, it can also be of huge advantage to institutions and corporations. What Is Liquid Staking? With regular staking, users earn rewards on their deposits. This works on proof-of-stake blockchains such as Ethereum, and cannot be done on proof-of-work blockchains such as Bitcoin. Most blockchains are now proof-of-stake or delegated-proof-of-stake, though there are many different models being tested out. Liquid Staking goes a step further than regular staking. With Liquid Staking, you get the rewards from staking, but are given a derivative token in return. For instance, you get the rewards for staking MATIC and are then given an aMATICb derivative token. This derivative token can then be used for other ...
