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Liquid Staking

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Crypto Basics

What Is Liquid Staking? How It Works, Risks and Examples

October 6, 2026
Liquid staking explained: ETH deposited into a staking pool of validators that stays staked, returning a liquid staking token (LST) usable in DeFi or tradable anytime, with depeg, smart contract and slashing risks, on navy NutshellCrypto branded background

Liquid staking lets you stake ETH or SOL and get a tradable token like stETH, rETH or mSOL. Learn how it works, DeFi uses, key risks and US tax basics.

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