When you stake crypto like Ethereum, you typically lock your coins to help secure the network and earn rewards. But what if you could stake liquid staking, a system that lets you earn staking rewards while keeping your assets usable—and still trade, lend, or use them in DeFi? That’s the core idea behind liquid staking. It’s not magic. It’s a smart workaround built on smart contracts that turns your locked-up stake into a tradable token, like stETH for Ethereum or rsETH for Rocket Pool. This way, you don’t lose access to your funds just because you’re helping the blockchain run smoothly.
Liquid staking relates directly to DeFi, a system of financial apps built on blockchains without banks or middlemen. Most DeFi protocols rely on locked collateral, but liquid staking breaks that rule. Instead of sitting idle, your staked ETH can become a liquidity pool asset on Uniswap or a loan collateral on Aave. It also connects to non-custodial staking, a method where you keep full control of your keys while still earning rewards. Unlike exchange staking—where Coinbase or Kraken holds your coins—liquid staking keeps you in charge. That’s why it’s popular in places like the U.S., where regulators are cracking down on centralized crypto services.
But it’s not risk-free. If the protocol backing your liquid staking token gets hacked, or if the underlying blockchain faces a major upgrade, your tokens could lose value. Some liquid staking tokens have traded below their underlying asset value during market stress. And while you get flexibility, you’re still exposed to slashing risks if the validator you’re indirectly using misbehaves. That’s why the posts below cover real cases—like how stETH held up during the 2023 bank crisis, or why some users switched from Lido to Rocket Pool after audit concerns. You’ll also find guides on how to compare liquid staking platforms, what fees to watch for, and how to avoid fake tokens pretending to be stETH or cbETH. This isn’t about hype. It’s about knowing exactly what you’re giving up and what you’re gaining when you choose liquid staking over traditional methods.
osETH is StakeWise's liquid staking token that lets you earn Ethereum staking rewards while keeping your ETH liquid. Unlike other tokens, osETH protects your principal from slashing risks through overcollateralization.
