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Author Topic: Liquid Staking is Going to be the Biggest Thing in this Space  (Read 59 times)
Psilocybin9 (OP)
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December 13, 2021, 12:48:52 AM
 #1

Staking is something most people in this space already know about. Staking involves locking your tokens into a contract for a certain period of time to get rewards, and help secure the network. Well, now there is liquid staking, and it allows you to stake your tokens as usual, but at the same time you will also be able to mint synthetic tokens using your staked tokens.

The synthetic tokens you mint using your staked tokens will have the exact same value as your underlying tokens, and will even match their price fluctuations. Additionally, these synthetic tokens can be utilized on DeFi applications for trading, and LPing on AMMs. You can redeem the synthetic tokens for the underlying staked tokens whenever you like just as long as the staking period is over.   

If you are interested in finding out more about liquid staking here is an article that covers it in depth. 

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December 13, 2021, 01:11:25 AM
 #2

There is already a lot of platforms that got liquid staking features these days. Especially on a different chain, like alternative chains of Ethereum, which is the transaction fee is cheap. I already tried different liquid staking on the Solana ecosystem, it's just nice because instead you just hold your coin in your wallet, why not stake it and earn some yield/ APY or APR. It's like passive earning.
OP is right, you can also participate in liquid pools using their staked tokens.

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December 13, 2021, 03:25:16 AM
 #3

I have a lot of staking in different chains and this is my favorite part of the crypto aside from trading. No doubt it is a passive income but there is a risk since the price of the token we are staking is also moving up and down its not gonna favor us if its going down even thr APR is high. So there is also a con for this. But all in all I love how it works.

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chakhigh
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January 03, 2022, 11:16:07 AM
 #4

The thing with staking is to choose the right platform and afford what you can lose.
I do consider staking as an experiment. If it works, you make a good profit.

A good liquid is a challenge for many platforms. But, with new Defi solutions, this could be solved. Using networks like Avax, Polygon, and TRC20 should help new defi projects. There are other methods to get involved in the defi space. Hedge funding (like the new Ferox method), and educated trading are other options.

Another issue with liquidity is sustainability. So, there has to be a way to sustain solid/growing liquidity for a longer time period.

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January 03, 2022, 11:32:05 AM
 #5

I've tried staking before, it's really great, especially when the coin you keep rises to high levels, of course it's not without some risks when the coin goes down or if you fall victim to some fake sites that give promises of high returns, for liquidity I tried it too but you need To put high capital to get good profits otherwise returns will be very poor. There are a lot of passive income sources but you have to be careful and choose platforms carefully and also know to choose good coins for investment.

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