💧What is Liquid Staking?

An overview of liquid staking and its benefits within the GoGoPool ecosystem.

Liquid Staking is a financial mechanism that allows users to stake their tokens to both support the network's security and earn rewards from validating the network, while still retaining liquidity.

Unlike traditional staking, where tokens are locked and cannot be used, liquid staking issues a token (i.e., ggAVAX) in return, representing the staked amount plus any rewards earned over time. This token (i.e., ggAVAX) can then be traded, sold, or used in decentralized finance (DeFi) applications, providing flexibility and liquidity to stakers.

Benefits:

• Flexibility: Provides the freedom to access staked funds without needing to unstake, offering a balance between supporting the network and personal liquidity needs.

• Yield Opportunities: Allows users to participate in additional yield-generating activities within DeFi ecosystems, potentially increasing their returns.

• Security and Participation: Contributes to the network's security by enabling a broader base of participants to stake, decentralizing the network further.

• Inclusivity: Enables staking with amounts smaller than the native minimum requirement (e.g., 25 AVAX), making it accessible even to those with limited funds to stake. This inclusivity allows for broader participation and investment diversification.