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TurboLoop
DeFi Glossary

Staking

Staking is the process of locking cryptocurrency to support a blockchain's consensus mechanism (Proof of Stake) in exchange for earning staking rewards.

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

TurboLoop offers higher fixed yields than typical staking (3%–54% vs 2%–8%) with stablecoin deposits — no price exposure on your principal.

TurboLoop vs staking comparison

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