Overview
Many Proof of Stake (PoS) blockchains require a large minimum amount of tokens to run a validator node (e.g., 32 ETH for Ethereum). Staking pools allow smaller holders to 'pool' their tokens together to meet these requirements.
Benefits
- Accessibility: Allows anyone with any amount of tokens to participate in staking.
- Simplicity: The pool operator handles the technical aspects of running the node.
- Frequent Rewards: Pools earn rewards more consistently than individual small stakers.
Liquid Staking
Some pools provide 'liquid staking tokens' (like stETH) that represent your staked assets, allowing you to use them in DeFi while still earning rewards.