Liquid Staking Introduction. What Is Liquid Staking. How Liquid Staking Works. How to Liquid Stake on Sui. Why. When you stake your coins on a blockchain, in your perspective, it’s stuck and you cannot move or use it until you unstake it. If you unstake (which takes time), you get no interest but you can now move your money.
Traditional staking locks your tokens for weeks or months, but liquid staking gives you immediate liquidity.
But what if you could continue earning staking rewards while still using your tokens? That’s where liquid staking comes in.

What Is Liquid Staking

Liquid staking is a process that allows you to stake your tokens for rewards but keep them liquid (you can still move and use them).
With liquid staking, you get the best of both worlds: staking rewards AND the ability to use your tokens in DeFi.
When you liquid stake, you’ll receive a token representing your stake that you can transfer and use in DeFi, just like the original token. You can trade, lend, or transfer it all while still earning staking rewards.

How Liquid Staking Works

You’ll stake your tokens with a liquid staking provider and recieve a liquid token (e.g stSUI) that represents your staked position. The liquid token earns interest, which will be reflected in the price of the liquid staking token (LST).
LST prices typically increase over time as staking rewards accumulate, making them appreciating assets.
You can now use or trade LST in various decentralized finance (DeFi) applications. When you want to unstake, you can either redeem your liquid token for the original tokens plus rewards, or sell the liquid token on a secondary market (which can be instant)

Liquid Staking Tutorial

There are many liquid staking apps available on various blockchains. On Sui, there’s Volo, SpringSui, Haedal, WalrusLST and many others that you can liquid stake your $SUI with. In this tutorial, we will liquid stake with SpringSui by Suilend.

Get Your Sui Tokens

Before you can stake anything, you need some of the $SUI tokens in your wallet. Once you’ve got that sorted, we’re ready to go.

Visit the LST Provider

An LST provider will issue you the tokens, you can visit their website to mint new LSTs. You can use SpringSui.com to mint popular LSTs or create your own in a few clicks.

Mint or Acquire LSTs

Connect your wallet on SpringSui and choose the LST you want to mint. Then, enter the amount of $SUI you want to stake and confirm the transaction in your wallet. You’ll receive the LST (like sSUI) in your wallet immediately after the transaction confirms. You can also swap for LSTs on your favourite DEX

Use Your LST in DeFi

The key advantage of liquid staking is that your LSTs are not locked — they can be used across the Sui DeFi ecosystem.
Always research LST providers carefully. Smart contract risks and validator performance can affect your rewards.
Here’s what you can do with your LSTs: Provide liquidity on DEXes to earn yield. Lend or borrow against them on lending platforms like Suilend or Scallop. Use them in yield aggregators and vaults for automated strategies. Participate in farming programs or airdrops that reward LST holders.

Unstake (Optional)

If you ever want to convert your LSTs back to regular $SUI: Use SpringSui’s redeem feature to initiate an unstaking request. Alternatively, swap your LSTs on a DEX for instant liquidity (though slippage may apply). Liquid staking is a viable way to reap the benefits of both interest and liquidity from staking. Instead of holding your tokens dormant, you can consider liquid staking