LSTs Explained: What They Are, How They Work, and Why They Matter in Crypto

When you stake Ethereum or other proof-of-stake coins, you lock up your tokens to help secure the network—and earn rewards for it. But what if you could earn those rewards LSTs, liquid staking tokens that represent your staked assets and let you use them elsewhere in DeFi. Also known as liquid staking derivatives, they solve the biggest problem with staking: losing access to your funds. LSTs give you a token that mirrors your staked balance, so you can trade it, lend it, or use it in decentralized apps while your original coins keep earning rewards. This is why LSTs have exploded in popularity, especially on Ethereum since the Merge.

LSTs are built on top of staking protocols, systems like Lido, Rocket Pool, and Coinbase Staking that manage the technical side of validating blocks and distributing rewards. These protocols handle the heavy lifting: you deposit ETH, they stake it for you, and issue you an LST—like stETH or rETH—that trades at close to 1:1 with your original asset. The magic happens when you take that LST and plug it into DeFi platforms, decentralized finance apps that let you earn even more by lending, providing liquidity, or borrowing against your staked assets. For example, you can deposit stETH into a lending pool to earn interest on top of your staking rewards. That’s two layers of yield, without ever touching your original ETH.

But LSTs aren’t risk-free. If the staking protocol gets hacked or mismanages funds, your LST could lose value. Some LSTs have also faced price deviations from their underlying asset during market stress. And while they’re great for active traders, they’re not always the best choice if you just want simple, long-term holding. Still, for anyone serious about maximizing returns in crypto, LSTs are a must-know tool. They turn passive staking into active capital efficiency.

Below, you’ll find real-world reviews and deep dives on platforms and tokens tied to staking, liquid assets, and DeFi yield strategies. Some posts expose scams hiding behind fake staking promises. Others break down how top LST protocols actually work—and whether they’re safe for your portfolio. Whether you’re new to staking or already using LSTs, these guides cut through the noise and show you what’s real, what’s risky, and what’s worth your attention.