> For the complete documentation index, see [llms.txt](https://liq-3.gitbook.io/stake.liq/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liq-3.gitbook.io/stake.liq/introduction/how-it-works.md).

# How it Works

Quick Links

LiQ is Mantle’s first liquid staking protocol, offering MNT holders a seamless way to stake, earn, and utilize their assets in DeFi without sacrificing liquidity. Through a structured staking and delegation system, LiQ enables users to stake their MNT, receive stMNT (staked MNT) as a liquid staking token, and deploy it across DeFi while continuously earning staking rewards.

This section provides a high-level overview of how LiQ operates. The following sections will go into detailed breakdowns of each core component:

* [**Staking:**](/stake.liq/staking-module/staking.md) How users delegate MNT and receive stMNT.
* [**Yield Deployment:**](/stake.liq/staking-module/yield-deployment.md) How staked MNT generates staking + DeFi rewards.
* [**Redemption:**](/stake.liq/staking-module/redemption.md) How users unstake and withdraw MNT or swap stMNT for instant liquidity.
* [**Liquidity Buffer:**](/stake.liq/staking-module/liquidity-buffer.md) How LiQ manages withdrawal liquidity and minimizes delays.
* [**Rewards:**](/stake.liq/staking-module/rewards.md) How staking rewards and DeFi yields are distributed to users.
* [**Security:**](/stake.liq/staking-module/security.md) How LiQ protects against slashing risks, liquidity failures, and contract vulnerabilities.