> For the complete documentation index, see [llms.txt](https://sdk.chorus.one/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sdk.chorus.one/staking-fundamentals/staking-concepts.md).

# Staking Concepts

## Staking Terms & Terminology

While we covered the overall gist of how staking works in our [Staking Overview](/staking-fundamentals/staking-overview.md), there are many nuances and different concepts in the world of staking that vary from network to network.

{% hint style="info" %}
Let's explore what some of the concepts are below that go beyond the traditional Proof of Stake model.
{% endhint %}

***

### Delegated Proof of Stake (DPoS)

A consensus mechanism where token holders delegate their staking power to validators who participate in network consensus on their behalf.

**Examples:**

* Networks like Tezos and Solana use DPoS among many others that use either DPoS directly or a combination of this consensus model with new novel models.

**Benefits:**

* Greater scalability and efficiency compared to traditional Proof of Stake (PoS).
* Lower barrier to entry for token holders who want to participate in staking.

***

### Staking as a Service (SaaS)

This is one of the many services Chorus One offers. SaaS involves a trusted third party solution that simplifies the staking process for users or institutions, typically by managing validator infrastructure.

{% hint style="info" %}
To learn more please feel free to review Staking Options: White Label vs Public Node
{% endhint %}

**Example:**

* Chorus One offers staking services for multiple networks, ensuring secure and reliable validator operations.

Benefits:

* Reduces technical complexity for stakers.
* Provides institutional-grade reliability.
* Allows White Label branding and dedicated support for all your staking needs.
* Comprehensive rewards reporting directly from Chorus One or via [Chorus One Rewards](/our-products/chorus-one-rewards.md)

***

### Slashing

A penalty imposed on validators (and their delegators) for misbehavior, such as downtime or double-signing blocks. It is the punishment mechanism to ensure and incentivize good behavior on a network for all participants and helps keep the network secure.

{% hint style="info" %}
Slashing risks are a part of many networks using a staking model, although slashing is not active on every network that uses staking.

However, this is why choosing a reliable staking provider such as Chorus One is so important when considering which validator to stake with.

* By operating highly reliable validators, Chorus One minimizes slashing risks for its delegators.
  {% endhint %}

***

### Auto-Compounding Staking Rewards

A mechanism that automatically reinvests staking rewards into the staked principal, allowing users to earn compound interest without manual intervention.

{% hint style="warning" %}
Not all networks have auto-compounding of staking rewards.

For these networks, it is advisable to find a cadence that works for you to periodically claim and stake the newly earned rewards to maximize your reward potential.
{% endhint %}

**Benefits:**

* Auto-compounding maximizes yield without additional effort for the user.
* This can make networks with this mechanic ideal for long-term stakers.

***

### Staking Pools

Staking Pools use a collective staking approach where multiple users combine their tokens to meet the minimum requirements for staking to create accessibility for users who otherwise could not participate and to increase reward efficiency.

**Examples:**

* [Ethereum Staking Pool](/our-products/chorus-one-ethereum-staking.md) — By pooling ETH in a custom solution, Chorus One has created an Ethereum staking solution that allows any user to stake any amount of ETH instead of being limited to quantities of 32 ETH.

**Benefits:**

* Accessibility for for more users leading to more equitable access to rewards potential.
* Increased network decentralization.

***

### Proof of Liquidity (PoL)

A staking mechanism that locks liquidity-providing tokens (e.g., LP tokens) in return for network rewards, aligning staking with liquidity provisioning.

**Benefits:**

* Encourages liquidity in trading pairs.
* Dual rewards from staking and trading fees.

***

Feel free to reach out to our Support Team if you would like any clarification.

{% hint style="info" %}
For direct support, please create a ticket on our [support platform](https://support.chorus.one/hc/en-us/requests/new).

A link for a support request can also be found along the top of this webpage as well as many other Chorus One resources including [Ethereum Staking Pool](https://opus.chorus.one/pool/stake/), [The Chorus One SDK](https://chorus-one.gitbook.io/sdk), and [our Blog](https://chorus.one/insights-category/blog).
{% endhint %}

***

<details>

<summary>About Chorus One</summary>

Chorus One is one of the largest institutional staking providers globally, operating infrastructure for over 60 Proof-of-Stake (PoS) networks, including Ethereum, Cosmos, Solana, Avalanche, Near, and others.

Since 2018, we have been at the forefront of the PoS industry, offering easy-to-use, enterprise-grade staking solutions, conducting industry-leading research, and investing in innovative protocols through Chorus One Ventures.

As an ISO 27001 certified provider, Chorus One also offers slashing and double-signing insurance to its institutional clients. For more information, visit [chorus.one](https://chorus.one/) or follow us on [LinkedIn](https://www.linkedin.com/company/chorus-one/), [X (formerly Twitter)](https://twitter.com/ChorusOne), and [Telegram](https://t.me/chorusone).

</details>


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