LST
Liquid staking is a software solution that enables users to stake directly on a proof of stake (PoS) network such as Ethereum, and receive a liquid staking token (LST) programmatically minted by the protocol when the user stakes. This LST provides access to liquidity while the user stakes.
Liquid staking derivatives (LSDs) have been one of the biggest narratives of 2023, against the backdrop of the Shapella upgrade for Ethereum. Put simply, LSDs are financial instruments that represent receipts of a staked token within a DeFi protocol.