Liquid staking token (LST) beginner's guide
LST is a tokenized representation of staked assets, designed to address the difficulty of using assets during conventional staking. It can be transferred or used in DeFi, but this does not mean it is free from price, protocol, or redemption risks.
LST What is
In proof-of-stake networks, users typically need to lock assets to participate in staking, making the assets inconvenient to trade or use during the lock-up period. Liquid staking tokens (LST) represent staked assets in token form, allowing holders to retain certain transfer and usage capabilities while continuing to participate in staking.
Basic operating model
After staking assets through the relevant protocol, users receive a LST. The original assets remain staked, while LST can be transferred, traded, or used in certain DeFi applications. It is a tokenized representation of a staking position; the specific conversion and yield rules depend on the protocol used.
Main uses and considerations
LST can reduce the inconvenience caused by waiting for unstaking and allow the same staked assets to participate in lending, trading, or liquidity services, thereby improving capital efficiency. However, the material focuses mainly on the benefits and does not fully explain potential risks such as smart contracts, price deviations, redemption restrictions, and protocol failures.
WBETH example
Wrapped Beacon ETH (WBETH)is one of the LST listed in the material, used to represent staked ETH and the value of related rewards. Holders can use this token in DeFi scenarios that support it; however, the scope of support, valuation method, and redemption conditions remain subject to the specific platform's rules.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/liquid-staking-token-lst
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