What is Staking?
Locking tokens to back a network or a protocol, usually for a yield of new issuance or fees.
In proof-of-stake, staking secures the chain and earns issuance. In DeFi, staking can mean depositing into a contract for rewards — a different risk entirely.
Staking yields are not free income: they are paid in an asset whose supply is growing, and the deposit itself can be locked or slashed.
How our model uses it
Staking yield is not a model input: supply inflation is a slow structural factor, not a next-day price signal.
Related terms
- Proof of stakeBasics
Consensus by locking tokens to propose and attest blocks, with slashing for misbehaviour.
- ValidatorDeFi
A node that proposes and attests blocks in a proof-of-stake network.
- Yield farmingDeFi
Chasing token incentives across protocols to earn the highest annualised yield.