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Glossary

Staking

Locking coins to help run a proof-of-stake network, with a queue to get them out.

Staking is not a high-yield savings account. On Ethereum, validators lock ether and can be penalised. Withdrawals, when they exist, are a queue. Liquid staking tokens add another contract and another market on top.

If an app promises staking returns inside a company balance, that is credit risk wearing a costume. See how buying crypto actually works, and who can pause the costume.

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