# Conflicts between Liquidity and Security


The mechanism of PoS determines that the security of the network is maintained by the mechanism of Staking, which means that the liquidity and security are mutually exclusive. Normally, increasing the liquidity of Staking requires to consider the network security, while the liquidity solution of PoS Staking token seeks to break this barrier, which reduces the opportunity cost for users to participate in Staking while improving the overall Staking rate of PoS public chains. If the Staking rate is too low (e.g., VSYS) will generate PoS consensus security trouble and nodes may have higher risk of centralization which will cause users loss by their safety concerns arise. Whereas high Staking rate (e.g., KSM) leads liquidity deficiency in the market. The price discovery can only be done through a few Token, which means that there are a lot of bubbles leading to higher price volatility. For those users who are Staking their assets, they cannot do risk hedging because there is no liquidity in locked position and opportunity cost of Staking be enlarged.