An honest look at liquid staking and liquid staking tokens

Hey guys,

We’re all seeing the articles popping left and right about ‘low risk, high reward’, ‘the benefits of liquid staking’, ‘the pros of liquid staking’ and so on written to boost traffic to DeFi protocols like Lido, Ankr and the likes but I’d really like to read anything – an opinion, a thread, a post, etc – that was not written by a content marketing team. At this point, all the superlatives are just having an opposite effect on my opinion about liquid staking, to be honest. It’s ‘all good, with none of the bad’.

Thoughts on liquid staking? Is it really as amazing as they make it out to be? Personally, I’m wary of locking ‘real’ tokens in a smart contract or a pool to then receive ‘equivalent’ liquid staking tokens that ‘are just as good as the real thing’ and then use them across other DEXs/pools/whatever provided they support the LS token in a pair or pay a rather exorbitant fee on MY own staked tokens if I have the audacity to decide to unstake them. Kinda reminds me of what banks do with customers’ funds, tbh.

So, is liquid staking the bomb or is it another ploy to redirect crypto holders’ tokens away from users and towards several protocols/companies for the benefit of the latter?

*edit: I understand how content marketing works, guys. I am not trying to badmouth any protocol/platform or product, so I implore anyone who feels their brand is personally attacked in this post to simply move along. I am NOT interested in your salary-backed opinion about how great liquid staking is – this is already 99.9% of the narrative online. I get it, in your opinion, it’s the best thing since sliced bread. Just please, common crypto users/holders with real opinions and experience.*

Thank you!

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5 thoughts on “An honest look at liquid staking and liquid staking tokens”

  1. Its not high reward but its considered a safe choice if you want some yield but have minimal exchange risk since the 2 things are the same.

    Most of the liquid staked tokens (except maybe Lido) dont really have much partners so not really much to do with them but sit in your wallet.

    It’s never all good, all smart contracts have risk but the risk of the staking contract getting hacked is about as likely as a CEX getting hacked. You’re more likely to sign a malicious contract in a random defi farm than the actual liquid staking contract getting hacked.

  2. In defi, anything is possible. I’m in the Avalanche ecosystem so from my experience using trader joe and steakhut now is a good investment and anything that involves lping and high fee emissions for stakers of native dex/protocol tokens. NFA

  3. I think liquid staking as an extra works well. Short term users can get benefits of it and at the same time not really losing something if you keep it short

  4. I love liquid staking. But it’s not for everybody imo. But the farms don’t last forever and people need to be aware of that. personally i like what’s on cosmos and avalanche

  5. You need to realize staking is mining on ethereum. It needs to be a big part of the ecosystem. Liquid Staking options won’t slow down, there’s multiple staking platforms that have launched just this month. The liquid part is just so that you don’t have to lock your ethereum. I do wonder how the liquid part will change once eth can be freely unlocked from staking. Not only will the options keep growing, it’s the best way to keep ethereum decentralized. Platforms like kraken hold too much staked ethereum right now. Coinbase just switched to a more decentralized rocketpool staking iirc. Then there’s staking platforms that specialize in multi chain staking etc. the innovation will keep coming, and more staking options will launch every month.


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