What is a Liquid Staking Token?

• A Liquid Staking Token (or Liquid Staking Derivative) represents a staked asset in a blockchain network (e.g Ethereum or Solana), providing more flexibility and liquidity. In proof-of-stake blockchains, staking means locking tokens as collateral to secure the network and earn rewards. However, these staked tokens become illiquid.

• Liquid staking solves this by issuing a tokenized representation of the staked asset, which can be traded or used in DeFi protocols, making staked assets productive while still locked. However, this introduces extra risks like smart contract vulnerabilities Link.

What Is BenQI?

• BENQI is a decentralized non-custodial liquidity market as well as a liquid staking protocol built on the high-speed Avalanche smart contract network. The lending protocol allows users to lend, borrow, or earn interest using their digital assets. The Liquid Staking protocol provides a solution for capital efficiency, offering users the opportunity to unlock their “staked” AVAX to be used on Decentralized Financial protocols Link.

What Is Ankr (ANKR)?

• Ankr makes staking, liquid staking, and other yield-earning opportunities easy and accessible to any crypto investor. Ankr creates the most scalable and decentralized staking infrastructure solution that aims to solve the capital inefficiency of Proof-of-Stake networks and similar blockchain consensus mechanisms Link.

What Is GoGoPool?

• GoGoPool is a decentralized staking protocol built to help Avalanche Subnets launch faster through liquid staking and $GGP.

GGP is the native utility token that is used for:

1. Lowering the AVAX staking cost of a validator node
2. Staking to be matched with AVAX from the deposit pool
3. Used in governance to make decisions about the protocol, aimed towards helping Subnets launch faster Link.

What is Yield Yak?

• Yield Yak is a simple tool for increasing yield from DeFi farming on the Avalanche network. Yield Yak is a community-driven initiative. Its community has created and maintained the market’s best, most affordable, and most diversified auto-compounder.

• Yield Yak is generally self-sufficient. Its community aids development by compounding incentives, proposing new techniques, and recommending crucial configuration improvements. Yield Yak farms may function continuously without the intervention of a team Link.