# LSW- Liquid Staked WAX

**Liquid Staking**

<figure><img src="https://1106702801-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MJILKtslrmNIVV9CYCR%2Fuploads%2FBt7LQPnZiyjswLyoHs7k%2Fimage.png?alt=media&#x26;token=52c70dd5-e51e-47b8-84e2-0c8eb95c6ddf" alt=""><figcaption></figcaption></figure>

Liquid staking empowers users to stake native tokens without locking them, providing a liquid token for use in various DeFi applications. This paper introduces $LSW, aiming to revolutionize staking on the WAX blockchain.

**Benefits**

1. Liquidity and Flexibility: $LSW allows users to earn staking rewards while retaining the flexibility to trade or use staked assets instantly, eliminating the trade-off between staking for APR and engaging in DeFi activities.
2. Improved Network Security: Encouraging more token holders to stake enhances overall blockchain network security.
3. Capital Efficiency: $LSW provides a more capital-efficient solution for blockchain projects and DeFi applications, avoiding having to constantly claim WAX tokens and vote for a set of proxies or validators.

**$LSW Use Cases**

1. DEX LiquiditY: The WAX/LSW facilitates liquid staking and immediate access to locked fund from staking contracts.&#x20;
2. Lending: LSW as collateral in lending protocols “cough cough”
3. Staking Derivatives: Creation of staking derivatives such as stakers’ baskets and leveraged staking positions.