GlossaryAdvanced
Liquid Staking Token
The tradeable token received in exchange for participating in liquid staking.
A liquid staking token (LST) is the tradeable token a participant receives in return for staking through a liquid staking provider, generally representing a claim on the underlying staked assets plus accrued rewards.
LSTs are often usable within other DeFi protocols, letting staked capital be productive in more than one way simultaneously — though this also introduces additional smart contract and protocol-dependency risk beyond simply staking directly.
Examples
- A liquid staking token can often be used as collateral in a separate DeFi lending protocol.
- An LST's value is generally intended to track the underlying staked assets plus accrued rewards.