Liquid Staking: Overview of Companies That Offer This Crypto Service

Liquid staking is gaining popularity due to the crypto advantages it offers to users compared to the traditional staking mode. In this article, we revisit the concept of liquid staking by presenting the main crypto platforms that offer this service to their users.

A Look Into the Crypto Concept of Liquid Staking

To understand the concept of liquid staking, we must first revisit the general concept of staking itself. This involves crypto holders locking up their assets to support and secure a specific blockchain.

But the choice to lock up their cryptos is, in a way, not without reward. Indeed, for any crypto holder who decides to stake their assets, it is a choice motivated by the possibility of receiving a reward in return.

In parallel to this classical staking mode, another form of staking is gaining a lot of attention. This is liquid staking, which represents a revolution compared to traditional staking models, due to its crypto advantages.

Indeed, unlike traditional staking, liquid staking allows users to stake cryptos while receiving new tradable cryptos representing their entitlement to the staked assets.

The main advantage of liquid staking lies in the unlocking of assets. While in traditional staking assets are locked and their use is limited, in liquid staking, assets are usable. They can be freely traded and used as collateral in decentralized finance platforms (DeFi).

Top #DeFi Liquid Staking Platforms

Liquid staking platforms redefine #crypto staking by allowing you to earn rewards while keeping your assets accessible.

Unlike traditional #staking, your funds aren't locked up.

Let's dive into the details in the #BTC #ETH #Solana pic.twitter.com/gblMFV8H65

— Dejan Horvat (@horvat_de) December 11, 2023

Crypto Companies Offering Liquid Staking Services

It must be said that in 2023, the liquid staking market has expanded, with various platforms offering users the possibilities to stake their assets. Leading these companies is Lido Finance, which boasts a total value locked (TVL) of 14 billion dollars. Lido supports Ethereum, Polygon and Solana, and offers annual percentage yields (APY) of 4.4 to 6.7%.

Coinbase Prime is next in line with over 2 billion dollars in TVL. This crypto platform is particularly user-friendly and offers an APY of 2 to 6.12%, on Ethereum and with no staking period. This is decentralized at Rocket Pool, which supports Ethereum, offering a reward of 3.93% per year.

Frax Ether, which is part of Frax Finance, offers a return of 5.22% on Ethereum with a TVL of over 400 million dollars. This platform differs from Stake Wise which is an open-source staking application on Ethereum. It has a TVL of 170 million dollars and allows users to stake any amount of ETH.

Another platform offering liquid staking services is Marinade Finance. Based on Solana, Marinade Finance allows users to earn a return on SOL cryptos, receiving mSOL tokens in exchange. JPool also allows staking of SOL assets on Solana, with users receiving JSOL tokens for liquidity mining, offering up to 8% yield per annum.

Besides these platforms offering liquid staking services, Sanitatis Staking, Tenderize, and Keep Network can also be mentioned as being particularly active in this market. The same goes for Binance, Ankr, EigenLayer, and Stader Labs.