Liquid staking in cryptocurrency allows users to earn passive income while maintaining flexibility, a crucial factor in the volatile crypto market. However, the issue of diminishing returns compared to conventional staking is a challenge.
DeFi developers are responding to this challenge by introducing liquid restaking protocols. These protocols aim to retain the benefits of liquid staking while addressing the problem of waning returns, providing a more lucrative option for users seeking better profitability in their staking activities.
