What it means
Locking tokens to help secure a proof of stake network, in return for rewards.
Stakers can lose part of their stake if their validator misbehaves, and the token's price can fall.
How it works
Defied doesn't offer staking.
Related terms
| Term | What it means |
|---|---|
| Proof of stake | A way for a blockchain to agree on new blocks, where validators lock up tokens as a guarantee of honest behaviour. |
| Validator | A computer that checks new transactions and helps add blocks on a proof of stake network. |
| Liquid staking | Staking a token through a protocol that gives you a tradable token in return, so your stake stays usable. |
This glossary explains terms in general. It isn't investment, tax or legal advice.