# Hybrid Staking

## What is Hybrid Staking?

Hybrid Staking is combination between Proof of Stake (PoS) in LUNC chain with CW-20 staking. \
Aim to give more extra rewards to users and give more use case to project or Validators to develop their ecosystem in Luna Classic. 

<figure><img src="/files/bO5mMeuyDRCgWb9To4yd" alt=""><figcaption></figcaption></figure>

### **How Does Hybrid Staking** Work on Garuda-Defi? <a href="#h-how-does-liquid-staking-work" id="h-how-does-liquid-staking-work"></a>

The LUNC staked by users on Garuda-DeFi platform will be delegated to one of many validators participating in the Hybrid Staking protocol on Garuda-DeFi Platforms.&#x20;

Rewards generated from delegates will be split (Depending on validator configuration), split rewards on validator side will be use to buyback the CW20 token and distributed to users along with the native token (LUNC and USTC) via Hybrid staking smart contract.&#x20;

This innovation of Hybrid staking opens up a world of possibilities for users, enabling them to potentially earn multiple staking rewards (LUNC, USTC and CW20 tokens) without giving up the liquidity.

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