Liquid staking aims to increase liquidity & capital efficiency for proof-of-stake blockchains like the blockchains in Cosmos. It helps you earn APY on staked Assets, participate in DeFi protocols with previously locked liquidity, and support network health.
In liquid staking, a protocol takes deposits from stakers, stakes the tokens with validators on behalf of the staker, and then gives the staker a voucher that is redeemable for the staked tokens. These vouchers offer the same functions as liquid tokens, and can be traded, transacted, and used as collateral.
On Quicksilver, you stake your Cosmos assets, like STARS or JUNO, and receive a qASSET in return (qSTARS, qJUNO). These qASSETS can be traded, sent, and used as collateral.