Liquid Staking Token

Definition ∞ A Liquid Staking Token (LST) is a derivative token that represents staked cryptocurrency on a proof-of-stake blockchain. LSTs allow users to retain liquidity for their staked assets, enabling them to use the tokens in other decentralized finance (DeFi) protocols while still earning staking rewards. This mechanism resolves the capital lock-up issue associated with traditional staking. It provides both yield generation and asset utility simultaneously.
Context ∞ The growth of liquid staking tokens has become a significant development within the DeFi ecosystem, particularly following Ethereum’s transition to proof-of-stake. LSTs are increasingly utilized as collateral and in various yield-generating strategies, amplifying capital efficiency. A key discussion involves the potential centralization risks if a few LST providers gain excessive control over staked assets. Future innovations aim to further decentralize liquid staking protocols and enhance their security features.

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→Onchain Finance

→Liquid Staking Token

→Yield Democratization

Figure Launches RWA Consortium and PRIME Token Democratizing Institutional DeFi Yield

The new liquid staking primitive on Solana unifies institutional RWA yield with retail DeFi liquidity, setting a new capital efficiency standard.

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→DeFi Pool Drain

→Ethereum Blockchain

→Yield Aggregator

Yearn yETH Pool Drained via Unreset Cached Storage Logic Flaw

A failure to clear cached virtual balances after a full pool withdrawal enabled an attacker to mint infinite LP tokens, compromising $9 million in liquid staking assets .

A gleaming, multi-layered metallic framework forms the core of a sophisticated system, housing embedded radiant blue square panels that display digital patterns. Scattered across its surfaces and within recesses are brilliant blue faceted gems and smaller spherical elements, interspersed with a fine white bubbly foam. This visual metaphor represents a robust blockchain infrastructure managing tokenized assets. The precise framework suggests smart contract execution and layer-2 scaling solutions, while the effervescent bubbles symbolize dynamic liquidity pools facilitating transaction processing within DeFi protocols.

→Cross-Chain Utility

→Asset Yield

→Liquid Staking Token

Firelight Launches XRP Staking and Risk Cover for Institutional DeFi Security

Firelight introduces a security primitive that utilizes staked XRP to underwrite DeFi exploit risk, directly addressing the vertical's $1B security gap.

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→Liquid Staking Token

→Onchain Loan Origination

→Bridging TradFi DeFi

Figure RWA Consortium Expands Institutional Private Credit Yield to Solana DeFi

The consortium uses Chainlink CCIP to bridge Figure's $1B+ monthly RWA loan originations, strategically unfragmenting private credit yield for Solana's capital.