1. 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.
2. 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.
Currently, Crypto.com only supports deposits and withdrawals of CDCETH tokens outside the Crypto.com Exchange and the Crypto.com App.
3. How do I wrap and unwrap Crypto.com LSTs?
Follow these steps to wrap and unwrap your staked tokens:
Stake your tokens
Wait for the ‘Activation’ period to end, and for the staking transaction status to change to ‘Staked’
Your staked token balance will be displayed under Wallet Balance. Choose to wrap your staked tokens into LSTs.
To unwrap, select Unwrap to trade LSTs back to staked tokens based on the prevailing conversion rate
The wrapping and unwrapping process is instantaneous, and the Crypto.com Exchange does not charge processing fees.
4. What is the conversion rate for wrapping and unwrapping Crypto.com LSTs?
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 on-chain 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 lost and/or subject to a penalty fee, which can adversely impact the conversion rate. In the unlikely event that the conversion rate changes by more than 5 basis points (bps) after you have initiated wrapping or unwrapping, your request may be rejected.
5. 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
6. Trading 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.
7. 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.
8. What tokens can be wrapped/unwrapped into/from Crypto.com LSTs?
Staked Token | Crypto.com LSTs | Whitepaper |
ETH | CDCETH | |
SOL | CDCSOL |
9. Liquid Staking Geo-restrictions
Persons from the following jurisdictions and all sanctioned nations are prohibited from participating in liquid staking. Please note that users who are prohibited from on-chain staking for certain virtual assets will not be able to participate in liquid staking as well. Crypto.com reserves the sole discretion to restrict liquid staking from certain users at any time for legal or regulatory reasons.
Country | Country Code |
American Samoa | AS/ASM |
Australia | AU/AUS |
Canada | CA/CAN |
Guam | GU/GUM |
Hong Kong | HK/HKG |
Kazakhstan | KZ/KAZ |
Malta | MT/MLT |
Marshall Islands | MH/MHL |
Minor Outlying Islands | UMI |
Northern Mariana Islands | MP/MNP |
Russia | RU/RUS |
Singapore | SG/SGP |
Papua New Guinea | PG/PNG |
Puerto Rico | PR/PRI |
Seychelles | SC/SYC |
South Korea | KR/KOR |
Thailand | TH/THA |
United States | US/USA |
US Virgin Islands | VI/VIR |