Overview
A staking derivative is a token representing a staked position, such as stETH, that remains usable in DeFi. It lets stakers earn yield while keeping liquidity. Derivatives are central to the staking economy.
How It Works
A user stakes an asset and receives a derivative token representing the position. The derivative accrues rewards and can be used as collateral or traded. Its value tracks the staked asset.
Why It Matters
Staking derivatives unlock capital efficiency and liquidity for staked assets. They power liquid staking and restaking. Their depeg risk is a key consideration.
Related Concepts
Staking derivatives relate to Liquid Staking, Restaking, and stETH. They are used across DeFi as collateral.