Staking
Staking commits eligible cryptoassets to proof-of-stake validation directly or through a service in return for protocol-derived rewards under stated conditions.
Returns depend on protocol issuance, validator performance, fees, participation, and reward rules, while the fiat value of both principal and rewards changes with the asset price. Assets may be locked or subject to an unbonding delay, and slashing or provider failure can reduce the amount returned. A platform’s displayed APY is an estimate or annualized rate, not a guarantee of asset units or monetary value.
Staking combines protocol, validator, custody, liquidity, and market-price risks; rewards may not offset a decline in the underlying asset.
Related terms
