Liquid Staking – How Does It Work? A Complete Guide on Liquid Staking in Crypto.com

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What is Liquid Staking?

Liquid Staking allows users to wrap the virtual assets they have put into the stake, and receive a receipt token that continues to accumulate rewards from the staking. This gives users a receipt token that can be traded, while their virtual assets are staking on the blockchain.

What is the token for Crypto.com staking (LST)?

The Crypto.com Staking (LST) token represents your invested token, along with all staking rewards earned. The exchange rate determines the amount of LST you get for wrapping your soaked tokens to LST, or the amount of soaked tokens you get for unwrapping your LST. There are no fees for wrapping and unwrapping.

Which LSTs support Crypto.com?

Crypto.com currently supports the following LSTs:

Crypto.com Staked ETH (CDCETH): Represents your website invested in Crypto.com and any accumulated rewards. Read the CDCETH whitepaper here.
Crypto.com Staked SOL (CDCSOL): Represents your Crypto.com invested solena and all accumulated rewards. Read the CDCSOL whitepaper here.

Now, Crypto.com only supports deposits and withdrawals of CDCETH tokens off-exchange Crypto.com and the Crypto.com app.

How to wrap and unwrap?

You can wrap invested tokens on the staking details page under Staking > My Portfolio in the Crypto.com app or select “Wrap/Unwrap” in your CDCETH or CDCSOL crypto wallet.

Replacement Terms

The exchange rate states:

Number of Crypto.com LSTs received when wrapping invested tokens
Number of Invested Tokens Received When Unwrapping Crypto.com LSTs

The conversion gateway is displayed when a wrapping request or wrapping cancellation is enabled.
*Please read the Staking Terms of Use carefully for the risks of ‘slashing' that may occur when the transaction reviewer representing these assets incorrectly verifies or does not verify a transaction.

Will I receive rewards for holding LSTs and being produced for separating them from stakes?

Both methods allow users to receive rewards, but their mechanics are different:

Invested tokens: Users receive staking rewards regularly based on the blockchain protocol. Rewards are received with the same type of token and accrued to the user's available balance. To unstaking, users need to submit a ‘Unstaking' request.
Crypto.com LSTs: Users receive rewards through the expected increase in exchange rates between the Crypto.com LSTs and the invested token. Rewards (if any) can be redeemed by unwrapping LSTs and receiving an amount of invested tokens according to the exchange rate.