How Liquid Staking Works :
Staking: You stake your assets (e.g., ETH) on a proof-of-stake (PoS) blockchain through a liquid staking platform like Lido or Rocket Pool.
Issuance of Liquid Token: In return, you receive a liquid, tokenized representation of the staked asset (e.g., stETH), which you can freely trade or use in DeFi activities.
Earning Rewards: The staked assets continue to earn staking rewards, which are reflected in the value or quantity of the liquid token.
Flexibility: The liquid tokens can be used as collateral in lending platforms, traded on decentralized exchanges (DEXs), or staked in liquidity pools.
Here https://hodlfm.com/education/liquid-staking-guide/ is a liquid staking guide.
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