You keep earning staking rewards while the liquid staking token (LST) can be sold, used as collateral or put into DeFi. Lido is the largest liquid staking protocol. LSTs can trade slightly below the value of the coin in stressed markets.
DeFi
Liquid staking
Also called: LST · liquid staking token · stETH
In shortStaking through a protocol that gives you a tradeable token (like stETH) representing your staked coins.