# Staking
In crypto assets, [staking](staking.md) is the act of time-locking [stablecoin](stablecoin.md) in a [smart-contracts](smart-contracts.md), typically with the promise of a yield or side payment of a [governance-token](governance-token.md) as a result of depositing the [cryptoassets](cryptoasset.md) with the third party.

This behaves somewhat like a [cd](cd.md) except the depository institution has no legal obligation to guarantees to custody funds or pay out said payments as it exists as a form of [regulatory-arbitrage](regulatory-arbitrage.md) outsde the regulatory perimeter.

Staking is a common building block in many so-called [DeFi](defi.md) protocols.

See also [counterparty risk](counterparty-risk.md), [bank run](bank-run.md), [Ponzi scheme](ponzi-scheme.md).

## References
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