What is staking?
Staking means locking your cryptocurrency in a blockchain network to help validate transactions and maintain network security. In return, you earn staking rewards — newly minted tokens distributed to validators and delegators.
How Proof of Stake works
In Proof of Stake (PoS) blockchains, validators are chosen to create new blocks based on how much they've staked. More stake = higher chance of being selected = more rewards. Delegators can stake with validators without running their own node.
Staking yields (2026)
| Asset | Typical staking yield |
|---|---|
| ETH | 3%–5% APY |
| BNB | 2%–4% APY |
| SOL | 5%–8% APY |
| MATIC | 4%–6% APY |
Staking vs DeFi yield farming
| Feature | Staking | DeFi Yield Farming |
|---|---|---|
| Asset exposure | Native token (volatile) | Can use stablecoins |
| Yield source | Token inflation | Protocol fees/interest |
| Lock-up | Often required | Usually flexible |
| Typical yield | 2%–8% | 3%–54%+ |
Staking risks
- Price risk — staking ETH means your principal fluctuates with ETH price
- Slashing — validators can lose stake for misbehaviour
- Lock-up periods — some staking requires locking for weeks or months