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.