Liquid Staking,


In traditional investments, investors are always happy about putting their money in funds or banks or buying treasuries, bonds or any other investment package and earning profits or interests.  However, in crypto, there are better alternatives since the crypto market is widely known to be a good challenger to the traditional market.

Staking is how the crypto market challenges traditional markets. Furthermore, another form of staking which is a niche market has shown to provide even better ways of staking and that is liquid staking. Unlike usual staking where tokens get locked up and users don’t get access to them anymore, liquid staking provides users with derivative tokens which they use to participate in the DeFi market.

So in effect, users get additional tokens to their staked tokens. These additional tokens provide enormous benefits and it starts with providing liquidity over staked assets. However, there are different coins in the space that have liquid staking options and ATOM posits as one of the best choices for investors.

The Benefits of Liquid Staking ATOM

This amazing improvement in staking comes with several benefits. Firstly, liquid staking ATOM provides investors with you extra liquidity over staked assets, which are ATOM in this case. Differing from the usual staking where there is just one possibility of earning through staking rewards but also with unfavorable lock-up periods, liquid staking does more for investors. They get derivative or representative tokens which are in a ratio of 1:1 to the staked ATOM. This brings the discussion to the extra income benefits of liquid staking. 

In addition to the regular staking rewards users earn periodically, the cloned tokens use cases in DeFi also involve earning extra through activities like trading, and yield farming. So investors stake and then get stkATOM which is used to participate in DeFi. Overall, this use case together with the staking rewards on the original staked tokens doubles users’ chance of earning. 

The PoS Consensus Ecosystem

To add up more to the benefits of is the importance in throwing support to the network. When you liquid stake ATOM, you provide immense support to the Cosmos network, a popular crypto network. Staking is a major activity of the PoS consensus ecosystem. Validators keep a substantial amount of tokens to keep a blockchain network working perfectly. Stakers delegate their coins to these validators who stake on the network on their behalf and then give them a quota of rewards earned based on their stakes. 

Liquid staking is also beneficial in ensuring decentralization in the crypto and blockchain ecosystem. Consider a liquid staking platform such as pStake, anyone anywhere on the globe can delegate their ATOM and get back stkATOM. That is the decentralization that it provides.


Liquid staking is growing and there are now several platforms offering liquid staking options for investors. pStake is a typical example of such. Users can delegate their ATOM and then start earning stkATOM. These can be used to participate in the DeFi economy to earn more rewards. staking ATOM will enable you to accumulate ATOM which can be kept for future better market conditions. Besides, the ROI earned on ATOM is better than several ROIs you would get on other coins in the crypto space.

By Jack

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