3. Traditional Staking Options vs Liquid Staking

Staking, which is conceptually (although fundamentally quite different) like government issued bonds, is a process by which the user lends money to a protocol in return for passive income. By doing this, you agree to different token lock periods ranging from very short term (1 week) to long term (1 year and longer). Traditionally, and especially true for ETH, there is a large opportunity cost to staking as your assets are locked and cannot be accessed.