Knowing the difference between native assets and liquid staking tokens (LSTs) helps you make informed staking decisions on the Solana network. This guide explains how each option works and the benefits they offer.
Native assets
Native assets are original tokens on the Solana blockchain—like SOL. When you stake native SOL, it’s locked and unavailable for other uses until you unstake it.
Key characteristics:
- Locked during staking: Staked SOL is locked and cannot be used until it's unstaked.
- Direct participation: Staking directly supports network security and earns rewards.
- Unstaking period: There is a delay when unstaking SOL before it becomes available again.
Liquid staking tokens
Liquid staking tokens let you earn rewards while keeping your assets liquid. When you stake SOL through a liquid staking provider, you receive LSTs that represent your staked SOL. You can trade or use these tokens in DeFi applications.
Key characteristics:
- Liquidity: Use LSTs in DeFi apps without waiting for unstaking.
- Ongoing rewards: Continue earning staking rewards while using your tokens.
- Tradable: LSTs are available on various decentralized exchanges.
For example, PSOL (Phantom Staked SOL) is a liquid staking token. Its value increases over time as rewards accumulate. Learn how to stake PSOL to start earning.
Compare native assets and LSTs
Your choice depends on how much flexibility you need. Native SOL offers simplicity and direct network participation, but it locks your tokens. LSTs provide liquidity and flexibility, especially for DeFi users, with some added complexity.
| Option | Pros | Cons |
| Native assets |
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| Liquid staking tokens |
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