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Home/Glossary/Staking
DeFi

Staking

In shortLocking coins to help secure a proof-of-stake network and earning rewards in return.

You can stake by running a validator, delegating to one, staking on an exchange, or using liquid staking. Rewards are often a few percent a year, paid in the same coin.

Risks: an unbonding period during which you can't sell, slashing, and — on exchanges — custody risk. Some "staking" products are simply lending under another name.

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Related terms

  • Proof of stake (PoS)A consensus method where validators lock up coins as collateral and lose part of them if they cheat.
  • ValidatorA participant in a proof-of-stake network who locks up coins to propose and confirm blocks.
  • Liquid stakingStaking through a protocol that gives you a tradeable token (like stETH) representing your staked coins.
  • RestakingReusing already-staked ETH (or other coins) to secure additional services for extra rewards.
  • SlashingThe penalty in proof-of-stake networks: part of a validator's staked coins is destroyed for breaking the rules.
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