# Overview

## What is Orchai Liquid Staking

Orchai Liquid Staking is a liquid staking protocol built on Oraichain. It tokenizes staked ORAI and allows users to use it within Decentralized Finance dApps freely.&#x20;

## Why Liquid Staking

Oraichain is a Proof-of-Stake (POS) network that generates returns for users who [delegate](https://docs.orai.io/developers/guide/delegate-tokens-to-a-validator) the ORAI token on validator nodes to secure the network. To do this, users are required to lock up the ORAI token for a predetermined time. This results in the lock up of capital, unable to be utilized within Decentralized Finance (DeFi).

Liquid Staking provides a solution for freeing up this locked up capital, creating greater capital efficiency within the Oraichain network. By tokenizing the staked ORAI into **sORAI** or **scORAI**, users will now be able to utilize the asset within Decentralized Finance dApps while earning passive returns from Oraichain staking itself.

The sORAI and scORAI assets provide developers and users with a wealth of strategies and options to build off of.


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