Many Decentralized Finance (DeFi) tokens, such as stETH and rETH, offer rewards for
holding, but they require users to lock their tokens for a long time. This means the tokens
can't be used elsewhere while they are locked, which limits how users can move or use their
funds in other DeFi activities.
For example, approximately 33,841,020 ETH was staked in Ethereum's proof-of-stake
system, which represents roughly 28% of the total ETH supply. However, most of this staked
ETH couldn't be reused for other opportunities because it was tied up. (Source: Coinbase)
This makes it difficult for users to get the most out of their assets.
