Stride

In Proof-of-Stake  (PoS) networks, token holders can stake their tokens, usually for a  duration of time, in order to secure the network. If the validator with  the locked stake misbehaves, it is slashed. In return, stakers are paid  inflationary token rewards, to compensate for the staking risk.

However, token holders often want to use their tokens freely – as collateral, to sell, etc.

Liquid  staked tokens (stTokens) allow token holders to get the best of both  worlds – receive staking rewards on a transferable token. As such, liquid staked tokens are foundational to the DeFi ecosystem.