> For the complete documentation index, see [llms.txt](https://docs.watt.si/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.watt.si/the-protocol/liquid-staking-for-tokens.md).

# Liquid staking for tokens

Why hold just another idle token in your wallet when you can hold a liquid-staked token and earn yield along the way?

**Liquid staking** is a mechanism that allows users to stake crypto assets while simultaneously receiving liquid token representations of their staked assets. These liquid-staked tokens can be freely traded, utilized in yield-generating strategies, or used as collateral within the broader DeFi ecosystem, effectively combining the benefits of staking rewards and liquidity.

Watt Protocol introduces the first liquid-staking service for Solana tokens. Any token can be wrapped into its liquid-staked representation, enabling users to simply **wrap, hold, and earn yield**.

Moreover, since liquid-staked Watt tokens are **fully composable**, they create new possibilities for product design, allowing other protocols and applications on Solana to freely integrate and take advantage of the intrinsic yield of Watt tokens.

<figure><img src="https://3846336298-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuyGEXzcSijKdoMiaeYqE%2Fuploads%2FkerKW8shEjq6yimUcaq1%2Fdocs-watt-protocol-mechanics.png?alt=media&amp;token=408edc81-b140-438f-91d3-f1041e8cb2a5" alt=""><figcaption></figcaption></figure>