What is the difference between staking and giving liquidity?

If you give liquidity, you bring assets into the pool. In return, you will get liquidity pool tokens which theoretically could be traded. As an incentive, you can stake those liquidity pool tokens, so you don't trade or exchange them immediately for tokens from the pool.

The liquidity pool tokens are no longer in your possession with staking. They end up in a (strike) contract. However, the contract has registered that they are yours, so you can easily reclaim them again. During the time the liquidity pool tokens are locked into the staking contract, you will receive rewards. 

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