Glossary / Staking

Staking

Staking is locking coins to help secure a proof-of-stake network in return for rewards.

Why it matters

It earns yield, but staked coins may be locked for a while and their value still moves with the market.

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Related terms

Proof of stakeProof of stake secures a blockchain by having validators lock up coins as collateral. Misb…APY and APRAPR is the simple yearly rate; APY includes compounding, so it is higher for the same rate…Liquid stakingLiquid staking gives you a receipt token for staked coins (for example stETH for ETH) that…

Written by the VaultX AI team. Educational only, not investment advice.

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