Glossary Term
Liquid Staking
Liquid staking is a DeFi innovation that allows users to stake their SOL or other tokens in securing the blockchain while receiving tradable, yield-bearing tokens in return. This lets users earn staking rewards and retain liquidity to participate in other DeFi activities on Solana.
Beginner
DeFi
Crypto Terminology
Liquid Staking: what is it?
Examples
- 1
Stake SOL with Marinade Finance, receive mSOL, and use mSOL for swaps or liquidity farming.
- 2
Use LSTs (e.g., stSOL, bSOL) as collateral in lending protocols.
- 3
DAO treasury earns staking rewards while deploying mSOL across governance or other DeFi platforms.
Common Use Cases
Collateralizing loans or margin trading with LSTs instead of locked SOL.
Participating in yield farming, liquidity mining, or NFT drops with liquid staked assets.
DAO or treasury management with ongoing yield and full DeFi participation.
Pro Tips
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Always check protocol audits and security—choose trusted liquid staking providers.
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Stay updated on unlock/unbonding periods if instant unstaking is not available.