Staking is one of the safest ways to earn rewards in DeFi because rewards are guaranteed by the blockchain protocol itself, and only the main asset is required to earn them. Moreover, staking doesn’t involve common DeFi risks like impermanent loss or liquidation.

What are potential staking risks?

• Slashing: If validator frequently misses block creation or tries to harm the network, other network participants can fine him by taking a part of his stake through slashing mechanism.
• Economic risk: The price of TON may decrease, which can result in lower-than-expected rewards in fiat terms or even losses for stakers.
• Hacking risk: The liquid staking protocol may be vulnerable, so it’s preferable to use protocols that have undergone a security audit. Learn more about Tonstakers security audit.
• Counterparty risk: Liquid staking requires users to rely on third party services, which can be hacked or rugged.

Is liquid staking safe from risks?

Tonstakers liquid staking mechanism protects users from slashing. Still, the economic and hacking risks apply.