Glossary - ChicksX

Liquid Staking Token (LST) is a tradable asset representing staked cryptocurrency, allowing flexibility and liquidity while earning rewards.

Liquid Staking Token (LST) is a tokenized representation of staked cryptocurrency assets. It enables users to earn staking rewards while maintaining liquidity. Unlike traditional staking, where assets are locked up, LSTs can be freely traded or used in other financial activities. They provide flexibility by allowing holders to access their funds without unstaking. This innovation supports more efficient capital utilization. It allows users to participate in DeFi activities while still benefiting from staking rewards. LSTs enhance the overall liquidity in the market, bridging the gap between staking and active asset management.