substaked

Substaked refers to a user or entity that has staked a cryptocurrency or digital asset within a larger staking pool or platform. In the context of decentralized finance (DeFi) and blockchain technology, staking involves locking up a certain amount of cryptocurrency to support the operations of a proof-of-stake (PoS) network. This process often requires participants to hold a significant amount of the native token to become a validator.

For individuals who may not meet the minimum staking requirements or wish to simplify the process, substaking offers a solution. By contributing their assets to a substaking service or pool, users effectively delegate their staking power to a third party. This third party, often a professional staking provider or a dedicated platform, aggregates funds from multiple substakers and then uses this combined stake to operate a validator node.

The benefits of substaking include accessibility and ease of use. Users can participate in staking rewards without needing to manage their own validator infrastructure, technical expertise, or the often substantial minimum staking amounts. In return for their delegation, substakers typically receive a portion of the staking rewards generated by the validator node, minus any fees charged by the substaking service. This model allows smaller holders to benefit from the security and economic incentives of PoS networks.