In Proceedings of the Mathematical Research for Bl
In Proceedings of the Mathematical Research for Blockchain Economy (MARBLE) Year 2024 Peer-reviewed
BibTeX PDF
Computer Science · Research

Liquid Staking Tokens in Automated Market Makers

Krzysztof Gogol Robin Fritsch Malte Schlosser Johnnatan Messias Benjamin Kraner Claudio Tessone
2024
Publication year
MARBLE
Venue
Peer-reviewed
Type
§ Abstract

Summary

Liquid staking tokens (LSTs) represent staked assets that can be traded and used in DeFi applications while still earning staking rewards, creating a new class of financial instruments. We present an empirical study of liquid staking tokens in automated market makers (AMMs), analyzing the behavior of LSTs across major DeX platforms including Uniswap, Curve, and Balancer. Using over 18 months of on-chain data, we characterize the liquidity, price stability, and yield characteristics of major LSTs (stETH, rETH, cbETH). We find that LST AMM pools exhibit unique risk profiles due to the staking yield component, and that their liquidity patterns differ significantly from standard ERC-20 token pairs. Our findings inform the design of AMM mechanisms tailored to LST pairs.

Cite this paper — BibTeX 
@InProceedings{liquidstakingtokensin,
  title = "{Liquid Staking Tokens in Automated Market Makers}",
  author = "Krzysztof Gogol and Robin Fritsch and Malte Schlosser and Johnnatan Messias and Benjamin Kraner and Claudio Tessone",
  year = "2024",
  month = jul,
  booktitle = "In Proceedings of the Mathematical Research for Blockchain Economy (MARBLE)",
}
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