SoK: Liquid Staking Tokens (LSTs)

arXiv:2404.00644v1 Announce Type: new
Abstract: Liquid Staking Tokens (LSTs) function as tokenized representations of staked native assets while also accruing staking rewards. They emerged as a preferred method of staking within Proof of Stake (PoS) blockchains, owing to their ease of use and tradability. In this Systematization of Knowledge (SoK), we establish a general framework describing the design choices and protocols underlying liquid staking. We then employ the framework to systematically compare the top LST implementations, examining their node operator …

arxiv assets blockchains cs.cr framework function general knowledge liquid pos proof rewards stake staking tokens