Liquid Loan is a derivative product offered by Algem that enables users to remain liquid while supporting projects by lending their ASTR tokens.
The loaned tokens are locked in Astar's dApp Staking module for the duration of the Liquid Loan to provide financial income to the supported project.
In return, lenders receive the project's native tokens distributed over the entire duration of the Liquid Loan period and a liquid aASTR token representing their participation in the Liquid Loan, which can be used on Algem's Defi partners applications.