Unlocking Staking Liquidity

Trusted Node uses the concept of liquid staking. Before delegating native tokens to validation nodes, users can generate wrapped derivatives (t-tokens) that can be swapped, sold, or deposited into high-APY protocols.

Users no longer have to choose between PoS and DeFi staking. Liquid staking allows them to combine staking rewards and liquidity mining yields to maximize their gains.

The ability to do both helps solve the previously discussed issue of DeFi protocols cannibalizing PoS security by offering higher APYs (see Lending Protocols vs. PoS security). Liquid staking incentivizes capital flow from DeFi to PoS and back to DeFi, creating new yield stacking opportunities.