> For the complete documentation index, see [llms.txt](https://docs.rain.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rain.fi/liquid.md).

# Liquid

**Liquid** (<https://liquid.rain.fi/>) is a protocol that allows users to stake their tokens and receive a liquid staking token (**stToken**) that can be used as collateral to borrow on [Rain.fi](http://rain.fi/).

This lets users keep utility and access liquidity while their tokens remain staked.

#### 🔁 How It Works

* Users stake tokens (e.g. JUP, COLLAT) into **Liquid**.
* In return, they receive an **stToken** (non-transferable, non-convertible).
* **stTokens** can be used as collateral for borrowing, but **cannot** be transferred or sold.

#### 🧷 Unstaking

* The unstaking period depends on the underlying staking program:
  * **stJUP** → **34 days**
  * **stCOLLAT** → **15 days**
* During the unstaking period (e.g. stJUP), users **lose voting power**.
* Once unstaking completes, the user receives back the base token.
  * **1 stToken = 1 base token, always.**

#### ⚠️ Liquidation Behavior

If a user’s **stToken** position is liquidated:

* The stToken is automatically sent to the lender’s wallet.
* It remains considered **staked** (with **full voting power restored for stJUP).**
* The lender can then choose to unstake if they wish.

#### 🔒 Restrictions

* Users **cannot create pools** using **stTokens**.
* **stTokens are non-transferable** and **cannot be swapped** into any other token.

#### 🎁 Rewards Distribution

* Users must **claim rewards directly** on Liquid after each distribution.
* Rewards are distributed in the form of **stTokens**, which directly increase the staked balance of each user.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.rain.fi/liquid.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.