Staking
Locking cryptocurrencies to secure a network and earn rewards.
Beginner-friendly explanation
Staking means locking cryptos to help a network (like Ethereum) operate. In return, you earn rewards.
Example: You lock 32 ETH on Ethereum 2.0 and earn interest.
Intermediate-level insight
Staking secures a Proof of Stake (PoS) blockchain network. The more you stake, the more you help validate transactions. Some services offer delegated staking for smaller users.
Example: Using Lido to stake ETH without running a full node yourself.
Advanced perspective
Staking involves liquidity challenges, slash risks (penalties for misconduct), and optimization of annualized yields. Liquid staking strategies enable staked assets to remain usable via derivative tokens.
Example: Holding stETH (liquid staking token) to benefit from staked Ethereum while keeping flexibility.
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