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quid Staking Token (LST)? | Learn about crypto and DeFi | Get Started with Bitcoin.com
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10/20/23, 1:34 AM What is a Liquid Staking Token (LST)? | Learn about crypto and DeFi | Get Started with Bitcoin.com
Staking has grown to become an integral part of the decentralized finance (DeFi) landscape. As the
crypto ecosystem continues to evolve, liquid staking tokens (LST) have emerged, providing a fresh
perspective on staking.
Staking typically involves locking up a certain number of tokens to support the operations of a network.
This can include validating transactions or supporting consensus mechanisms like Proof-of-Stake. Once
tokens are staked, they usually become illiquid, meaning they cannot be easily accessed or sold. This is
where LSTs come into play.
A liquid staking token is a tokenized representation of staked assets. When a user stakes their assets, they
receive an equivalent amount of Liquid Staking Tokens. These LSTs can then be traded, sold, or used in
other DeFi protocols, providing liquidity to the staker even while their original assets remain staked.
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What is staking?
Learn about the power of staking.
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10/20/23, 1:34 AM What is a Liquid Staking Token (LST)? | Learn about crypto and DeFi | Get Started with Bitcoin.com
What is APY?
APY stands for annual percentage yield. It is a way to calculate interest earned
on an investment that includes the effects of compound interest.
What is liquidity?
Liquidity has several slightly different but interrelated meanings. For the
purposes of crypto, liquidity most often refers to financial liquidity and market
liquidity.
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10/20/23, 1:34 AM What is a Liquid Staking Token (LST)? | Learn about crypto and DeFi | Get Started with Bitcoin.com
What is volatility?
Discover the role of volatility in crypto markets, how it’s measured, and more.
What is inflation?
Understand inflation, how it's measured, and how to protect yourself from it.
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