A form of staking in which a user locks their tokens in the network to validate transactions and earn rewards, just like with traditional staking. However, in traditional staking, the locked tokens remain inaccessible until the end of the specified lock-up period. In contrast, in liquid staking, “wrapped” tokens are issued to replace the locked ones. These are liquid derivative assets that can be used freely without waiting for the lock-up period to end. Liquid staking allows users to earn staking rewards while simultaneously deploying their capital elsewhere.