Liquid Restaking: A New Approach to Staking in DeFi

Liquid Restaking represents a transformative innovation in decentralized finance (DeFi), merging the benefits of traditional staking with enhanced liquidity. Unlike conventional staking, where assets are locked and inaccessible, liquid restaking allows users to stake their tokens while maintaining the ability to trade or utilize them across various DeFi protocols. This dual functionality is achieved through derivative tokens that mirror the staked assets, enabling continuous participation in the network’s security and consensus mechanisms without sacrificing liquidity. By offering greater flexibility and maximizing capital efficiency, liquid restaking aims to redefine user engagement and yield optimization in the DeFi ecosystem.