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Building an LST on Solana

Liquid staking tokens are a type of cryptocurrency token that represent staked assets in a proof-of-stake (PoS) blockchain ecosystem, allowing users to stake their tokens while still maintaining liquidity. When users stake their tokens to support network operations (like validating transactions), they typically lock them up, making them illiquid.

Liquid staking enables users to stake their assets without losing access to them. Here’s how it works:

  1. Staking: Users stake their tokens through a liquid staking protocol.
  2. Tokenization: In return, they receive liquid staking tokens that represent their staked assets. These tokens can often be used in other decentralized finance (DeFi) applications.
  3. Liquidity: Users can trade, lend, or use these liquid staking tokens while still earning staking rewards from the underlying assets.

This allows for greater flexibility and the ability to earn additional yield on staked assets, making it an appealing option for many cryptocurrency holders. If you have more specific questions about liquid staking tokens or their use cases, let me know!