Liquid Staking on Radix
Put your validator stake to work
The Babylon update saw Radix introduce the concept of liquid staking. Here's how it works:
A user stakes to a validator (to help secure the network and earn emissions)
The validator returns the user a fungible LSU token representing their share of the staking pool
Each different validator issues a unique LSU token
The validator staking pool (of which the LSU holder owns a share) accrues XRD rewards (network emissions) over time. Rewards are discounted for validator downtime (penalties) and validator fees.
Currently, as there is no slashing, LSUs can only go up in value (or at worse remain constant)
So a staker to a validator on Radix holds LSU tokens which are unique to that specific validator, fungible and increase in XRD value over time.
The Radix protocol enforces a 7 day unstaking period - the time it takes from unstaking your LSU to receiving the associated XRD stake back.
For more comprehensive details of staking on Radix, see this overview.
Read on for how the LSU Pool works.
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