Are you just leaving your WAL in the standard 14-day unlock period? That’s a shame. The Walrus protocol’s liquid staking mode allows you to earn staking rewards while keeping your funds flexible. Through the two liquid staking tokens, haWAL and sWAL, you can lock in yields and also deploy your funds into DeFi opportunities at any time.

First, let’s explain what these two tokens are. haWAL is a value-appreciating asset — your WAL in your wallet doesn’t increase directly, but as rewards accumulate, the value of haWAL relative to WAL will grow, effectively providing automatic compounding. sWAL represents your share in the staking pool. It helps secure the network while allowing you to trade on exchanges or use it in DeFi protocols at any time.

Why choose liquid staking? First, capital efficiency. By using haWAL or sWAL as collateral on lending platforms like Scallop or providing liquidity on DEXs like Cetus to earn trading fees, you can generate additional income. Second, true instant liquidity — no need to wait for the unlock period. You can swap LST tokens back to WAL on exchanges anytime. Third, auto-compounding — staking rewards are automatically reinvested, saving you manual operations.

But don’t forget the risks. Both DeFi and liquid staking involve smart contract risks, which are unavoidable. During market volatility, LST token prices may be slightly lower than the native WAL. Governance rights are mostly controlled by the protocol, and advanced meta-governance features are still developing.

Overall, traditional staking locks your assets, while liquid staking makes your assets active. For those long-term bullish on WAL, combining haWAL and sWAL can optimize yields, maintain flexibility, and enable deeper participation in the Sui ecosystem.

Disclaimer: The above content does not constitute financial advice. Please conduct your own research before making any investment decisions.