Exploring Use Cases and Benefits of the Liquid Staking ?

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Before delving into Liquid Staking, it's crucial to understand the concept of staking. Staking involves participating in a blockchain network by locking up your cryptocurrency to support its operations. In return, you receive rewards, akin to earning interest on savings, contributing to network security and functionality. However, staking locks your coins, rendering them illiquid, as they cannot be sold or traded immediately. They undergo an unstaking period before becoming liquid again, which varies across blockchains, typically ranging from 7 to 21 days.

Now, what exactly is Liquid Staking? It's a process where you stake your cryptocurrency assets to earn rewards while retaining their ability to be used elsewhere, such as trading or providing liquidity in DeFi platforms. Unlike traditional staking contracts with withdrawal waiting periods, liquid staking offers flexibility and access to your funds while engaging in staking activities. It's akin to earning interest on savings while having the freedom to withdraw funds whenever necessary.

Let's dive into some use-cases! Are you ready?

The Basics

Install Zerion Wallet

Zerion stands as a sophisticated and seamlessly integrated wallet platform, meticulously crafted to aid users in the effective management of their DeFi and NFT portfolios, accessible through both Browser Extension and Mobile devices.

How to Buy ETH from Binance

Want to buy crypto but don't know where to buy Ethereum? No worries! Binance offers many options where you can easily buy several cryptocurrencies including Ethereum, with the lowest fees and highest security.

Transfer Funds from Ethereum Mainnet to Arbitrum

In this guide, we'll delve into the process of transferring your funds from Ethereum to Arbitrum using the Native Bridge functionality.

Get exposure to wstETH on Balancer

What is the wstETH (Wrapped stETH) ?

The yield generation mechanism of wstETH stems from the staking rewards earned by the underlying ETH deposited in the Lido protocol. As validators in the Ethereum 2.0 network validate transactions and secure the network, they receive rewards in the form of ETH. These rewards are distributed proportionally to all stakers through the Lido protocol, including those who hold wstETH tokens.

Therefore, by holding wstETH tokens, users can passively earn a share of the staking rewards generated by the underlying ETH, thus generating a yield on their investment. This yield is accrued over time as more ETH is staked and more rewards are distributed to stakers, providing users with a way to earn a return on their assets while still maintaining liquidity and accessibility through the ERC-20 standard.

How to get exposure to wstETH?
👉 Visit Balancer Platform 🔗 Link
👉 Connect your Wallet
👉 Select Arbitrum Network
👉 Swap any assets for wstETH

✅ Done!

Your wstETH will increase in value with time and you can exchange it at anytime.

Balancer Platform

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Balancer's thoughtful architecture enables a wide range of innovative liquidity strategies.


Image Author Artontray from Train to Crypto Team


Crypto Enthusiast and Skilled Developer, diving into the world of article writing to enhance understanding and share insights. Ready to decode the complexities of crypto through a unique lens.


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