What is Liquid Staking?

Liquid staking allows users to earn rewards by staking their assets while retaining liquidity through tradable tokens that represent their staked holdings

Benefits of Liquid Staking:

• Liquidity: Your assets aren't entirely locked; you can still use their value in the DeFi ecosystem.

• Flexibility: You can exit your position more easily than with traditional staking, which often requires a lock-up period.

• Compounding Opportunities: Use the liquid token to earn additional yields in other financial products.

It’s a popular concept in DeFi, bridging the gap between staking rewards and financial flexibility.

Example: Moome Liquid Staking

For a token like Moome, liquid staking means:

1. Users stake their meme coins as collateral to mint Moome tokens.

2. The staked meme coins earn yield, while the user gets liquid Moome tokens that can be traded or used in DeFi.

3. Burning Moome tokens allows users to reclaim a proportional share of the staked assets, ensuring both staking rewards and liquidity.