Liquid Staking
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Liquid staking combines the benefits of staking with the flexibility of liquidity.
Traditionally, when you stake your tokens in a blockchain network, they are locked up for a specific period, earning rewards but limiting your ability to use them for other purposes.
Liquid staking protocols like address this limitation by issuing liquid tokens representing your staked assets. These liquid tokens can be freely transferred and used in other DeFi applications while still earning staking rewards in the background. As a result, Liquid staking can generate active income through various DeFi activities such as trading, yield farming, and liquidity provision.
For example, after receiving hTON tokens for staking your TON coins with Hipo, you can trade them on decentralized exchanges (DEXs) to capitalize on price movements and generate active income.
By participating in trading activities on DEXs, you can take advantage of arbitrage opportunities, provide liquidity to trading pairs, or simply speculate on the price of Hipo Staked TON tokens against other assets. This flexibility allows you to optimize your investment strategy and maximize overall returns while still earning staking rewards on your underlying assets.