What is Liquid Staking?
Liquid Staking is Kava’s liquid staking module that allows users to stake $KAVA with a validator of their choice and receive a staking derivative represented as bKAVA.
With the Liquid module, users retain their voting power, unlike most liquid staking protocols, making it unique and bringing unique challenges when trying to unlock that liquidity cleanly.
Currently, the only use case is supplying bKAVA to the Earn and Boost protocols because the Earn protocol is best suited to handle bKAVA. There will be more use cases coming for bKAVA soon.
Tips for Liquid Staking:
- Be sure to refrain from delegating with validators with 100% commission (Kraken and Binance) because you wouldn't earn the regular staking rewards as part of the Liquid Staking APY.
- You are subject to a 1-month or 12-month vesting option when claiming rewards.
- Validator commissions deduct the staking APY when you seek to delegate with a validator on the Kava app through Liquid Staking.
- It would help if you researched validators on https://www.mintscan.io/kava/validators for commissions and running uptime before you delegate with selected validators.
- You can delegate with more than one validator.
- Vesting rewards cannot be supplied to Liquid Staking but can be delegated with a validator through a supported wallet application (Trust Wallet or Keplr).
- For users who supply KAVA to Liquid Staking with MetaMask, it doesn't affect the ability to earn rewards through Liquid Staking. It is important to note that if users wish to withdraw KAVA from Liquid Staking with MetaMask, it will be un-delegated and released into MetaMask after 21 days.