DeFi & Yield

What is liquid staking and what is a liquid staking token (LST)?

Liquid staking is a method where you stake a proof-of-stake asset and receive a tradable token representing your staked position, letting you earn staking rewards while keeping liquidity. That representative token is the liquid staking token (LST), which tracks your underlying stake plus accrued rewards and can be used elsewhere in DeFi. For example, staking ETH through a liquid staking protocol gives you an LST you can hold, transfer, or deploy while the original stake keeps earning. LSTs add layers of smart contract and de-peg exposure, so understand the mechanics and risks before participating.

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