What is staking? Why should I stake?
Staking borrows from the traditional concept of a yield-bearing savings account. In a bank, customers deposit their funds into an account and earn a certain percentage for keeping it there. Meanwhile, the bank loans this money to businesses as debts through the fractional reserve system. In return, the bank earns high interest and pays the customer a smaller portion as interest on their deposit.
However, staking differs from traditional banking yields in a few ways. Instead of fiat currency, users stake crypto assets to help secure a blockchain network.
Another major difference is that staking rewards are often higher. Because blockchain networks are decentralized and operate without central intermediaries, there are few overhead costs, so rewards go directly to participants rather than third parties.
In its most basic form, staking requires users to lock up their crypto assets for a particular period to maintain and secure the network. In return, users are rewarded with newly minted coins of the underlying network’s native asset.
What is liquid staking? What’s the difference?
Liquid staking revolutionizes traditional staking by eliminating the lock-up period, allowing users to earn rewards while maintaining liquidity. Unlike conventional staking—where assets are locked to secure the network—liquid staking protocols issue tradable tokens (e.g. sSUI) that represent the staked assets. These tokens can be used across DeFi for lending, borrowing, or trading, unlocking the full potential of idle capital. By merging staking rewards with liquidity, users no longer face the dilemma of choosing between earning passive income or accessing their funds.
This innovation mirrors the efficiency of decentralized finance, combining security with flexibility. In traditional finance, locked deposits earn interest but remain untouchable; liquid staking breaks this barrier by tokenizing staked positions. Since these derivative tokens accrue rewards automatically, users can benefit from compounding yields by leveraging other DeFi protocols.
Built on transparent smart contracts, liquid staking also removes intermediaries, ensuring rewards flow directly to users—just like in DeFi lending, but with the added advantage of network participation. This seamless integration of staking and liquidity epitomizes the next evolution of yield generation in crypto.
Why stake SUI?
Staking SUI lets you earn rewards (around 2-3% annually) while keeping your crypto relatively flexible. Unlike many blockchains that lock your funds for weeks when staking, Sui allows near-instant withdrawals, often within 24 hours. You don’t need technical skills—just delegate SUI and start earning. Additionally, you have to option to get liquid staking tokens (like sSUI) that can be used in DeFi apps for extra earning opportunities, all with ultra-low fees.
Sui makes staking simple and secure. Its advanced object-oriented architecture and Move programming language helps prevent common crypto risks while letting you move your money freely. Whether you want to earn yield by staking or to use your staked tokens in lending or trading, Sui has the options. It’s a user-friendly way to grow your crypto without missing out on other opportunities.
