Liquid staking offers various benefits that include liquidity, flexibility, risk management, diversification, and yield optimization. By engaging in liquid staking, you can receive staked tokens in a liquid form that can be utilized for other DeFi strategies, all while earning staking rewards. Unlike traditional staking, you have the ability to withdraw your staked tokens at any time without having to wait for a specific period. This means that you can access your funds instantly and in full.
Furthermore, liquid staking allows you to earn rewards from multiple protocols. When you stake your EGLD through liquid staking, you are staking with various node operators, which diversifies your staking portfolio and increases network decentralization. Additionally, you can earn higher returns by accessing the auto-compounding function. Liquid staking also offers opportunities to access more yields through the Lending App, creating LPs on Ashswap, and employ leverage staking strategies. The possibilities are endless.