What is Liquid Staking?
Liquid staking allows users to wrap their staked virtual assets and receive a receipt token that continues to accrue staking rewards. This provides users with a tradeable receipt token while their virtual assets are staked on-chain.
What is Crypto.com Liquid Staked Token (LST)?
Crypto.com Liquid Staked Token (LST) represents your staked token, along with any accrued staking rewards. A conversion rate determines the amount of LSTs you receive for wrapping your staked tokens to LSTs, or the amount of staked tokens you receive for unwrapping LSTs.No fees are charged for wrapping and unwrapping.
What LSTs does Crypto.com support?
Crypto.com currently supports the following LSTs:
Crypto.com Staked ETH (CDCETH): representing your staked Ether (ETH) at Crypto.com and any accrued staking rewards. Read CDCETH whitepaper here.
Crypto.com Staked SOL (CDCSOL): representing your staked Solana at Crypto.com and any accrued staking rewards. Read CDCSOL whitepaper here..
How do I wrap and unwrap?
For CDCETH
Follow the below steps to wrap and unwrap:
Stake your ETH
Wait for the Activation period
Wrap staked ETH at staking details page under Staking > My Portfolio in Crypto.com App or choose “Wrap/Unwrap” at CDCETH or CDCSOL crypto wallet (See below)
At Staking Details page | At crypto wallet |
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CDCETH can only be wrapped when your staking transaction status has changed to ‘Staked’ after the ‘Activation’ period ends. Staked ETH undergoing unbonding are not eligible for wrapping. In the unlikely event that the conversion rate changes by more than 5 bps after you have initiated wrapping and unwrapping, your wrapping/unwrapping request will be rejected.
CDCETH balance is reflected on your Crypto Wallet. CDCETH can be unwrapped to staked ETH at any time based on the prevailing conversion rate.
For CDCSOL
Follow the below steps to wrap and unwrap:
Go to Market tab
Search coin ‘CDCSOL’ or ‘SOL’
Click on the wrapping and unwrapping banner on the coin page (See below image).
You can wrap your SOL in your crypto wallet to CDCSOL. CDCSOL will be deposited to your crypto wallet after your request has been processed (est. 1 day).
CDCSOL can be unwrapped to SOL at any time at the prevailing conversation rate. You will be charged a one-time 0.1% fee for unwrapping your CDCSOL into SOL which will be reflected in the conversation rate on the unwrapping screen. The unwrapping is subject to the on-chain unbonding processing time.
What is the conversion rate for wrapping and unwrapping?
The conversion rate determines:
The number of Crypto.com LSTs received when wrapping staked tokens
The number of staked tokens received when unwrapping Crypto.com LSTs
The conversion rate is adjusted based on the ratio of accrued staking rewards (for compounded or non-compounded tokens) to staked tokens since the introduction of Crypto.com LSTs, and is likely to increase over time.
The conversion rate is displayed when a wrapping or unwrapping request is initiated.
*Please read the Staking Terms and Conditions carefully in relation to the risks of ‘slashing’, which may occur when the transaction validator representing those assets incorrectly validates or fails to validate a transaction. Slashing typically involves the reduction or confiscation of a validator’s assets as a consequence of their improper actions. As a result, validation rewards may not be paid out, and the staked virtual assets might also be subject to a penalty fee which can adversely impact the conversion rate.
Will I receive rewards by holding Crypto.com LSTs, and how does it differ from holding staked tokens?
Both methods allow users to receive rewards, but their mechanics differ.
Staked Tokens
Users regularly receive staking rewards based on the blockchain protocol
Rewards are received in the same type of token, and are credited to the user’s available balance
To unstake, users have to submit an 'Unstaking' request
Crypto.com LSTs
Users receive rewards via the expected increase in conversion rates between Crypto.com LSTs and the staked token
Rewards (if any) are redeemed by unwrapping the LSTs and receiving an amount of staked tokens based on the conversion rate
Conversion rates typically rise with rewards accrued over time, allowing users to receive more staked tokens when unwrapped
Trading of Crypto.com LSTs
Crypto.com LST is a tradeable receipt token representing your staked token and any accrued staking rewards. Trading Crypto.com LSTs on Crypto.com platforms is subject to jurisdictional limitations.
After I unwrap Crypto.com LSTs, how do I receive back tokens from my staked tokens?
Unwrapped Crypto.com LSTs will appear as ‘Tokens (Staked)’ in your account. Eligible users have two options to redeem their staked assets:
Users can initiate an 'Unstaking' request* to receive an equivalent amount in native assets, e.g., unstake 1 staked ETH and receive 1 ETH. You will only receive your ETH after the protocol’s on-chain ‘Unbonding’ period ends.
Users may trade the Crypto.com LST for the native token if the trading pair is available on the Exchange.
*This only applies to the transaction status of Staked Balances that has changed to ‘Staked’ after the ‘Activation’ period ends.
**This section does not apply to the unwrapping from CDCSOL to SOL, for which staking and wrapping (and, consequently, unwrapping and unstaking) are combined into one single process as described in Section 4 above.
Who can participate in Liquid Staking?
Verified Crypto.com App users who are not citizens or residents of the following jurisdictions are eligible to Liquid Staking feature:
The United States of America and its territories
Australia
Canada
Hong Kong SAR
South Korea
Singapore*
Thailand
Seychelles
Malta
European Economic Area countries
Note: Crypto.com reserves the sole discretion to restrict liquid staking from certain users at any time for legal, regulatory or any other reasons.
*Only verified accredited investors in Singapore are eligible for this feature. Learn more here.