It’s not a consensus method. It’s just providing liquidity. Settlement is still happening on BTC L1.

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I understand what your are getting at, I think it’s just logically a little misplaced is all.

Exactly. You literally have to proof your stake by L1 tx, and only then you're able to transact with it.

It's the most accurate definition of PoS and also the best PoS system out there.