Liquid Staking Flows

Definition ∞ Liquid staking flows describe the movement of staked digital assets into and out of liquid staking protocols. These protocols issue liquid staking tokens (LSTs) in return for staked assets, allowing users to maintain liquidity and participate in other DeFi activities while earning staking rewards.
Context ∞ The volume and direction of liquid staking flows are critical for understanding the liquidity dynamics and yield generation strategies within proof-of-stake ecosystems. Growth in these flows indicates increasing demand for flexible staking solutions and can impact the overall decentralization and security of the underlying blockchain network.