What is liquid staking?

Liquid staking lets you stake tokens while receiving a liquid staking token (LST) in return. This LST represents your staked position and can often be used in DeFi while your original tokens remain staked.

Why liquid staking exists

Maintain liquidity while earning staking rewards.

Improve capital efficiency by using LSTs as collateral or for yield strategies.

Reduce opportunity cost during long lock or unbonding periods.

How liquid staking works

You stake through a liquid staking protocol.

You receive an LST (for example, stETH for staked ETH) that tracks your stake.

Rewards accrue to the LST’s value or as additional tokens, depending on the protocol.

To exit, you either redeem the LST for the underlying after any exit period, or swap the LST on a market if supported.

Risks and considerations

Protocol risk - smart contract or operational risks in the liquid staking provider.

Liquidity risk - LST markets may be thin during stress.

Depeg risk - LSTs can trade at a discount or premium to the underlying stake.

Complexity - using LSTs in DeFi adds additional layers of risk.

Liquid staking in Wraith Wallet

Wraith Wallet surfaces supported liquid staking options where available.

The app shows provider, fees, and any exit or cooldown periods before you proceed.

You remain responsible for understanding the provider’s risks and terms.

Key points to remember

Liquid staking issues a tradable token that represents your staked position.

It can improve capital efficiency but adds protocol and liquidity risks.

Review provider details carefully before committing.

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Guides

Get started with Wraith Wallet with these step by step guides.

🗃️ Wraith Wallet basics Here are some basic guides for new Wraith Wallet users.

🗃️ Wraith Wallet advanced Here are some advanced guides for Wraith Wallet users.

🗃️ How to secure my Wraith Wallet Learn how to keep your Wraith Wallet secure at all times.

🗃️ Wraith Wallet migration guides Moving your crypto to Wraith Wallet.

[Previous: What is liquid staking?] [Next: Wraith Wallet basics]

Wraith Wallet basics

New Wraith Wallet user guides.

📄️ Wraith Wallet setup Setting up your Wraith Wallet.

📄️ Backup Wraith Wallet Backup your recovery phrase.

📄️ Restore Wraith Wallet Recover your Wraith Wallet easily.

📄️ How to delete a wallet Step-by-step guide on how to delete a wallet.

📄️ How to add a blockchain or network on Wraith Wallet How to manually enable a supported blockchain or network on Wraith Wallet.

📄️ How to add a token or custom token on Wraith Wallet How to add or enable tokens, even custom ones, on Wraith Wallet.

📄️ How to buy crypto with Wraith Wallet Learn how to buy crypto the easy way with Wraith Wallet in this simple step-by-step guide.

📄️ How to sell crypto with Wraith Wallet Learn how to sell crypto the easy way with Wraith Wallet in this simple step-by-step guide.

📄️ Send crypto from Wraith Wallet How to send crypto from Wraith Wallet to an exchange or another crypto wallet.

📄️ Receive crypto in Wraith Wallet How to receive crypto in Wraith Wallet from another wallet, or a friend.

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Wraith Wallet setup

How to setup Wraith Wallet Start using Wraith Wallet in just 3 easy steps.

iOS Android

Step 1 - Download and install Go to the App Store and download Wraith Wallet. Install Wraith Wallet then tap on Open.

Download Wraith Wallet → Open Wraith Wallet

Step 2 - Create new wallet Tap on Create a New Wallet to show your unique recovery phrase.

important Save your recovery phrase.

Create New Wallet → Save Recovery Phrase

Step 3 - Complete the recovery phrase quick test Complete the quick test to make sure that you have saved your recovery phrase. Tap on Continue, and you can now start using Wraith Wallet.

Recovery Phrase Quick Test → Start Using Wraith Wallet on iOS

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