🧠 What are LST (Liquid Staking Tokens) and why is it the future of staking?
Liquid Staking Tokens (LST) are tokens you receive in exchange for assets locked in staking. They allow you to participate in staking while maintaining liquidity.
For example: you stake 1 ETH through Lido and receive 1 stETH. You earn rewards for staking, but can trade or use stETH in DeFi protocols.
Advantages of LST:
💸 Liquidity while staking.
📈 Ability to participate in DeFi and farming.
🔐 Decentralized governance.
Risks:
📉 Deviation of LST's price from the underlying asset.
⚠️ Smart contract vulnerabilities.
This solution is already actively implemented in Ethereum, Solana, Cosmos. If you are interested in passive income — LST is worth exploring further.
