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Liquid Staking

Liquid staking is a method of staking cryptocurrency that allows users to earn staking rewards while maintaining access to the value of their staked assets. When a user stakes through a liquid staking protocol, they receive a derivative token (like stETH for staked ETH) that represents their staked position. This derivative can be traded, used as collateral in DeFi, or transferred, solving the liquidity problem of traditional staking where funds are locked.

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