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5 Opportunities to Maximize Your Returns via Liquid Staking

Intermediate
web3
Sep 3, 2024
7 min read
0

With growing interest from investors, and major exchanges such as Bybit diving into the space, liquid staking has been experiencing explosive growth. For instance, Solana’s liquid staking total value locked (TVL) has skyrocketed in 2024, soaring from $1.9 billion to a staggering $3.94 billion. This innovative method of staking offers both flexibility and potential for higher returns, which is why it's capturing the attention of many investors. 

This article will break down what liquid staking is, how it operates and reveal five neat ways you can enhance your returns with this exciting approach.

Key Takeaways:

  • Liquid staking lets you earn rewards while keeping your assets accessible, giving you the best of both worlds — flexibility and the chance for higher returns.

  • By using strategies such as leveraged staking, liquidity provision and yield farming, you can significantly increase your earnings. However, it’s also important to be aware of the risks involved.

  • Spreading your investments across different platforms can help you balance rewards and risks, making liquid staking a smart option whether you're just starting out, or are a seasoned trader.

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