Liquid Staking Tokens (LSTs) revolutionize cryptocurrency staking by transforming locked assets into tradable representations, enabling crypto holders to earn rewards while participating in DeFi applications. These tokens act as verifiable receipts for staked assets in Proof-of-Stake (PoS) networks, allowing users to trade, lend, or provide liquidity through platforms like Lido’s stETH (staked Ethereum) or Marinade’s mSOL. Unlike traditional staking that locks funds until unbonding, LSTs unlock capital efficiency by maintaining liquidity during the staking period. Popular use cases include collateralizing loans on Aave, supplying liquidity to decentralized exchanges, and restaking in yield farms to compound returns. With protocols like Jito and Ethena offering yields up to 11% APY, LSTs empower investors to maximize earning potential without sacrificing network security. As the liquid staking market grows—exceeding $25 billion TVL in 2025—these tokens bridge traditional staking and DeFi, fostering innovation in decentralized finance. To engage safely, users should prioritize platforms with robust security audits and insurance coverage to mitigate smart contract risks.