DeFi vs. PoS Staking

The term ‘staking’ stems directly from the Proof-of-stake blockchain consensus mechanism and is an inherent part of chains’ functionality and governance mechanisms.

However, it has also been used in DeFi in relation to non-PoS blockchains. For example, Binance offers DeFi staking of Bitcoin (PoW).

The term has evolved to mean earning yields on any capital temporarily locked into staking pools and vaults. It is sometimes confused with providing liquidity and liquidity mining through DeFi protocols.

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