Liquid Staking Tokens (LSTs) represent a staked asset in proof-of-stake networks while maintaining liquidity. When users stake tokens in a network, they receive LSTs in return, allowing them to continue participating in decentralized finance (DeFi) activities such as lending, trading, and borrowing, all while still earning staking rewards. LSTs enhance capital efficiency by unlocking the value of staked assets, making them a popular choice in DeFi ecosystems.
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