Staking
Locking up cryptocurrency to help secure a blockchain network, earning rewards in return.
Staking is how proof-of-stake blockchains stay secure. Validators lock up (stake) the chain's native token as collateral. If they validate honestly, they earn staking rewards. If they misbehave, their stake gets slashed.
As a regular user, you can participate in staking without running a validator by delegating your tokens to one. Liquid staking protocols let you stake while keeping your tokens liquid (usable in DeFi).
Note: you can't "stake" USDC in the traditional sense because USDC isn't a proof-of-stake token. When platforms say they offer "USDC staking," they usually mean lending or providing liquidity, which earns yield but isn't technically staking. The distinction matters because the risk profile is different.
Related Terms
Proof of Stake (PoS)
A consensus mechanism where validators stake cryptocurrency as collateral to earn the right to verify transactions.
Validator
A computer that verifies transactions and adds new blocks to a proof-of-stake blockchain.
Yield
The return earned on deposited or lent cryptocurrency, expressed as an interest rate.
DeFi (Decentralized Finance)
Financial services built on blockchain smart contracts that operate without traditional intermediaries like banks.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.