There are a few reasons people take these options:

1. Instant liquidity - if you are staking SPS on Splinterlands, then you’ll get a 55% APR but you also have to lock your SPS for 28 days. Liquidity pools are… liquid! You can unstake instantly and take advantage of market movements
2. Trading liquidity - by providing liquidity, you’re becoming a market maker and supporting the trading liquidity of that asset on another platform while getting paid fees + yield to do so
3. Diversified yield - as seen with the recent rise in SPS staking, the yield can change drastically over night. In this case, it doubled the Splinterlands native staking yield but that may not always be the case. A liquidity pool simply offers another way to diversify the yield you can earn on an asset

This all being said, yes there is a different set of risk. There is also a higher learning curve. These are the trade-offs that make the APR for staking pSPS 2x higher than staking SPS on Splinterlands. Hope this helps!

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