Staking

Staking is the process of locking up the cryptocurrency, tokens, or NFTs in an exchange account, crypto wallet, or smart contract for an amount of time. Cryptocurrency staking serves many important functions across many different blockchains and cryptocurrency projects. In some situations, people who stake crypto assets or NFTs will earn a rate of return or yield in return for staking. Certain blockchain protocols rely on staking, for example, Proof of Stake tokens such as Eth 2.0. DeFi also utilizes staking and requires users to stake funds inside of smart contracts to facilitate liquidity and token swaps.