Staking Derivative

A staking derivative is a financial instrument commonly used in decentralized finance (DeFi) blockchain protocols. It leverages staking, where assets are deposited into a blockchain protocol to earn regular rewards, in derivative form, usually through a Proof-of-Stake (PoS) blockchain. These derivatives are often prefixed with the traditional token name, such as “cTokens,” representing other assets like ETH within the Compound blockchain.