Native LST

Definition ∞ Native LST refers to a Liquid Staking Token that is directly issued by the underlying blockchain protocol or a highly integrated component, rather than a third-party decentralized application. These tokens represent staked assets within the protocol itself, allowing users to participate in staking while maintaining liquidity. Native LSTs often benefit from closer alignment with the core network’s security and governance structures. They provide a direct, liquid representation of staked value within the native ecosystem.
Context ∞ The emergence of native LSTs is a significant development in the staking landscape, particularly for newer proof-of-stake blockchains. Discussions often center on the advantages of protocol-level liquidity versus third-party solutions, including security implications and integration benefits. The design of native LSTs can influence the overall decentralization and economic stability of the network. News frequently covers the launch and adoption of these tokens as ecosystems mature.