What is Liquid Staking Token (LST)? Bitrue Guide

2025-10-21

Staking has always been a cornerstone of blockchain ecosystems, rewarding users who help secure networks. But as crypto evolves, so do the ways to stake.

One of the biggest breakthroughs in recent years is the Liquid Staking Token (LST), a new class of crypto assets that allow users to earn staking rewards without losing access to their funds.

Unlike traditional staking, which locks your assets for weeks or months, liquid staking gives you a tradable token that represents your staked balance. This innovation combines yield generation with liquidity, letting you make the most out of your holdings.

This Bitrue guide explains what Liquid Staking Tokens are, how they work, and why they’re shaping the next era of decentralized finance.

Key Takeaways

Liquid Staking Tokens (LSTs) represent staked assets that remain liquid and usable across DeFi.
They allow users to earn staking rewards while still trading or lending their tokens.
LSTs solve the liquidity problem in traditional staking models.
Popular examples include stETH, rETH, and mETH.
Bitrue makes it easy to explore, track, and trade LST-related tokens on its platform.

What Is a Liquid Staking Token (LST)?

A Liquid Staking Token (LST) is a digital representation of your staked cryptocurrency. When you stake tokens like Ethereum, Solana, or Mantle through a liquid staking protocol, you receive an equivalent token that mirrors your staked position.

For example, when staking 1 ETH using a liquid staking service such as Lido, you receive 1 stETH. This new token continuously accumulates staking rewards and can be freely traded or used in decentralized applications.

LSTs allow you to stay active in DeFi ecosystems, providing the best of both worlds, staking income and liquidity.

How Does Liquid Staking Work?

Liquid staking typically involves three key steps that make it different from traditional staking.

First, users stake their crypto with a protocol that delegates the assets to validators who secure the blockchain. The network then begins generating staking rewards.

Second, instead of keeping the funds locked, the protocol issues a Liquid Staking Token (LST) to the user. This token represents the staked amount plus any accumulated rewards. Examples include stETH for Ethereum, mSOL for Solana, or mETH on the Mantle network.

Third, the user can choose to hold the LST to continue earning rewards, trade it on exchanges, or use it in other DeFi products such as lending, farming, or liquidity pools. When the user wants to exit staking, the LST can be redeemed for the original token and any accrued yield.

Through this structure, liquid staking enables capital efficiency, your funds never sit idle.

Liquid Staking vs Traditional Staking

In traditional staking, users lock their tokens for a fixed period. Those funds are unavailable for trading, lending, or other on-chain activities until the lockup expires. This limits flexibility and capital use, even though staking yields are earned during that time.

Liquid staking removes these limitations. The moment you stake through a liquid staking provider, you receive an LST that can move freely across DeFi. This token still earns rewards but also functions like any other crypto asset.

The biggest advantages of liquid staking include improved flexibility, better liquidity, and enhanced capital efficiency. It lets users multiply their potential returns while maintaining exposure to network rewards.

Examples of Popular Liquid Staking Tokens

The rise of LSTs has introduced a variety of projects catering to different blockchains and investor needs.

1. stETH by Lido Finance is the most recognized Liquid Staking Token on Ethereum, providing users with a simple and decentralized way to stake ETH.

2. rETH by Rocket Pool offers decentralized staking for Ethereum with an open validator structure, enabling anyone to participate.

3. mETH by Mantle represents a modular approach to LSTs, integrating directly with Layer-2 networks to support faster transactions and better DeFi utility.

4. mSOL by Marinade Finance brings liquid staking to Solana, allowing holders to avoid long unbonding periods.

5. cbETH by Coinbase is a custodial version aimed at institutional investors seeking regulatory assurance.

All of these tokens share one goal, combining staking rewards with liquidity to create a more efficient and dynamic crypto economy.

Why Liquid Staking Matters

Liquid staking is transforming how investors interact with blockchain networks. After Ethereum’s Shanghai upgrade allowed withdrawals of staked ETH, the liquid staking market grew rapidly, becoming one of DeFi’s biggest sectors.

Here are the main reasons why it matters:

Capital Efficiency: Instead of locking assets, users can deploy LSTs in other protocols to earn multiple streams of income.
Liquidity: Tokens can be swapped or sold instantly without waiting through long unstaking periods.
Composability: LSTs integrate smoothly across DeFi, from yield farming to collateralized lending.
Accessibility: Liquid staking lowers entry barriers, enabling everyday users to participate in staking without running validator nodes.
Network Security: By attracting more participants to staking, LSTs strengthen blockchain consensus mechanisms.

Liquid staking is not only a technical innovation but also an economic one, making crypto yield strategies more flexible and scalable.

How to Track Liquid Staking Tokens on Bitrue

Bitrue allows users to explore and analyze LST-related assets through its dedicated platform, Bitrue Alpha.

To get started, visit the Bitrue Alpha dashboard via the Bitrue website or app. You can view detailed analytics for top Liquid Staking Tokens such as stETH, MNT, and mETH.

Each listing displays up-to-date data, including price charts, market cap, liquidity, holder concentration, and audit results. This transparency helps traders compare projects, identify risks, and evaluate long-term growth potential.

After identifying a token of interest, you can add it to your watchlist or trade it directly using USDT pairs on Bitrue’s spot market.

Bitrue Alpha’s early-access model ensures you can discover emerging LST projects before they become widely available.

The Future of Liquid Staking Tokens

Liquid staking has already surpassed lending and decentralized exchanges in total value locked, proving its importance in DeFi. The next phase of growth will focus on restaking and cross-chain expansion.

Restaking protocols such as EigenLayer are introducing new models that allow LST holders to reuse their tokens to secure additional services, earning even more yield. Meanwhile, cross-chain LSTs will extend this concept across multiple ecosystems, connecting liquidity between networks like Ethereum, Solana, and Mantle.

Institutional adoption is also expected to rise as regulated exchanges and custodial services introduce compliant liquid staking products. With over $30 billion in value locked globally, Liquid Staking Tokens are no longer an experiment, they are a foundation of the modern DeFi landscape.

Final Thoughts

Liquid Staking Tokens (LSTs) represent a turning point for staking and yield generation in crypto. They allow users to stay flexible while participating in network security and earning consistent rewards.

Whether you are an active trader, a long-term holder, or a DeFi enthusiast, understanding LSTs gives you a powerful edge in navigating the evolving blockchain economy.

Through Bitrue Alpha, you can analyze, track, and trade Liquid Staking Tokens efficiently, empowering you to take full advantage of this growing sector.

FAQs

What is a Liquid Staking Token?

A Liquid Staking Token is a tradable representation of staked crypto assets that continue earning rewards while remaining liquid.

How does liquid staking work?

When you stake through a liquid staking protocol, you receive an LST in return. This token reflects your staked balance and can be used across DeFi while still accruing rewards.

Why is liquid staking important?

It combines staking rewards with liquidity, allowing users to maximize yield without locking their funds.

Which are the top Liquid Staking Tokens?

Popular examples include stETH, rETH, mETH, mSOL, and cbETH — each representing different blockchain ecosystems.

Can I trade LSTs on Bitrue?

Yes. Bitrue lists multiple LST-related tokens and allows users to track and trade them through the Bitrue Alpha platform.

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Disclaimer: The content of this article does not constitute financial or investment advice.

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