A liquid staking token is the tradable token that a user receives when depositing crypto-assets with a liquid staking service, and it is the same instrument described in the main entry on liquid staking derivatives. The token stands for the user's share of the pooled stake and of the rewards it earns, and can be sold, lent or used as collateral while the underlying assets remain locked in staking. "Liquid staking token", often shortened to LST, has become the more common name, partly because the word "derivative" carries regulatory meaning that the product may not fit.
Tokens follow one of two designs. In a rebasing token, the holder's balance rises as rewards accrue, so that one token stays close in value to one unit of the staked asset. In a reward-bearing token, the balance is fixed and the exchange rate against the staked asset rises over time. The difference matters for tax and for staking reward accounting.
Holders bear risks beyond those of the staked asset: the token may trade below its backing when many holders sell at once, the service's smart contracts may fail, and penalties from validator slashing are shared across holders. The process of liquid staking and its use in liquid restaking are covered separately.