YIELDS & RETURNS
Staking (Cryptocurrency Staking)
Definition
Staking involves locking tokens to support blockchain operations or protocol functions in exchange for rewards. This includes validator staking and DeFi protocol staking.
Example
Example
You can stake ETH to become a validator and earn staking rewards, or stake protocol tokens to earn governance tokens.
Risks to Consider
Risks
- Slashing risk
- Lock-up periods
- Validator performance
