Definition ∞ Single-asset staking involves committing a single type of cryptocurrency to a proof-of-stake network to support its operations and earn rewards. Participants lock their tokens to validate transactions and secure the blockchain. This process does not require pairing assets in a liquidity pool, thereby avoiding impermanent loss. It provides a direct method for earning passive income from network participation.
Context ∞ Single-asset staking is a popular topic in crypto news, especially for investors seeking yield on their digital holdings without exposure to liquidity pool risks. The profitability and security of various staking protocols are frequently analyzed. Developments in liquid staking derivatives are further enhancing the flexibility and accessibility of this investment strategy.