Liquid staking is gaining popularity. For good reason, the crypto advantages it offers to users as opposed to classic staking mode. In this article we return to the notion of liquid staking by presenting the main crypto platforms which offer this service to their users.
Return to the crypto notion of liquid staking
To understand the concept of liquid staking, we must first return to that of staking itself. The latter consists of crypto holders locking their assets. This is with a view to supporting and securing a specific blockchain.
But the choice to lock their cryptos is, in a way, not free. Indeed, for any crypto holder who decides to stack their assets, it is a choice motivated by the possibility of receiving a reward in return.
Alongside this so-called classic mode of staking, another form of staking is getting a lot of attention. These include liquid staking which presents itself as a revolution compared to traditional staking models. This, because of its crypto advantages.
Indeed, unlike traditional staking, liquid staking allows users to stake cryptos. This, by receiving new tradable cryptos representing their right to the assets involved.
Thus, the main advantage of liquid staking lies in the unlocking of assets. While in traditional staking the assets are blocked and their use thus limited, in liquid staking the assets are usable. They can be freely exchanged and used as collateral in decentralized financial platforms (DeFi).
Crypto firms offering the liquid staking service
It must be said that in 2023, the liquid staking market has expanded, various platforms offering users the opportunity to stake their assets. At the top of these companies is notably Lido Finance which displays a total value locked (TVL) of $14 billion. Lido supports Ethereum, Polygon, and Solana, and offers annual percentage rates (APY) from 4.4% to 6.7%.
Coinbase Prime follows in second place with over $2 billion in TVL. This crypto platform is particularly user-friendly and offers an APY of 2 to 6.12%. This, on Ethereum and without a stake period. The latter 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 yield of 5.22% on Ethereum for a TVL of more than $400 million. This platform differs from Stake Wise which is an open source staking application on Ethereum. It has a TVL of $170 million and allows users to stake any amount of ETH.
Another platform that offers liquid staking services, Marinade Finance. Built on Solana, Marinade Finance allows users to earn a return on SOL cryptos, receiving mSOL tokens in return. JPool also allows SOL assets to be staked on Solana, with users receiving JSOL tokens for liquidity mining, offering up to 8% yield per year.
In addition to these platforms which offer liquid staking services, we can cite Sanitatis Staking, Tenderize or Keep Network as being particularly active in this market. Ditto for Binance, Ankr, EigenLayer and Stader Labs.
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