How Liquid Staking and Regular Staking are different?
Both liquid staking and regular staking mean one thing: locking the chain's native tokens to enhance the network's security and earn rewards. Still, they are different: regular staking requires maintaining infrastructure, while liquid staking users just provide their tokens to regular stakers.
Here are the main differences between TON staking and Tonstakers liquid staking:
Regular Staking | Liquid Staking | |
Hardware | Requires to set up a node and maintain it. | Doesn't require setting up a node. Stake from your wallet. |
Minimum deposit | At least 300,000 TON to start. | Tonstakers minimum amount to stake is 1 TON. |
Lock-up | Has a lock-up period. | Tonstakers allows instant withdrawals with no lock-up. |
Liquidity | Staked tokens are locked and can't be reused. | Tonstakers issues tsTON for staked TON that can be used in DeFi for additional yields. |
APY | Validators receive full staking APY. | Tonstakers collects a small fee for its services, which leads to slightly lower APY. |
Risks | Validators can lose tokens due to slashing. | Tonstakers users are protected from slashing. |