What is Liquid Staking?
Liquid staking protocols allow users to provide their tokens to validators and earn staking rewards with the same APY. Users might do so if they don't have enough tokens to become a validator or if they don't want to bother with node maintenance.
For example, Tonstakers liquid staking protocol enables users to:
- Stake from 1 TON instead of 300,000 TON.
- Withdraw staked TON at any moment without waiting for the validation cycle to end.
- Receive tsTON tokens, that represent staked TON and use them in DeFi protocols for additional yield.