> For the complete documentation index, see [llms.txt](https://docs.alcor.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.alcor.exchange/lsw-liquid-staked-wax.md).

# LSW- Liquid Staked WAX

**Liquid Staking**

<figure><img src="/files/9bKkNtfw6IVElUj4BtPY" 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.