--- title: "Liquid Stake Units (LSUs)" path: "/contents/tech/core-concepts/liquid-stake-units" version: "1.3.0" author: "Hydrate" createdAt: "2026-02-18T22:38:09.869Z" updatedAt: "2026-07-22T07:08:36.971Z" --- # Liquid Stake Units (LSUs) | **Type** | Liquid Staking Derivative | | **Mechanism** | Native resource, value accrues automatically | | **[DeFi](https://en.wikipedia.org/wiki/Decentralized_finance) Composability** | Usable as collateral, in LP positions, etc. | ## Overview **Liquid Stake Units (LSUs)** are native Radix tokens representing staked [XRD](/contents/tech/core-protocols/xrd-token) with a specific [validator](/contents/tech/core-concepts/validator-nodes). Unlike liquid staking on other chains (Lido's stETH, etc.), Radix LSUs are built into the protocol — they're [native resources](/contents/tech/core-concepts/asset-oriented-programming), not smart contract wrappers. LSU value accrues automatically as staking rewards compound — the exchange rate between LSU and XRD continuously increases. Users can use LSUs in [DeFi](https://en.wikipedia.org/wiki/Decentralized_finance) while still earning staking rewards: as collateral on [Weft Finance](/ecosystem/weft-finance), in liquidity pools on [Ociswap](/ecosystem/ociswap), or managed via [ShardSpace](/ecosystem/shardspace). ## How LSUs Work Each [validator](/contents/tech/core-concepts/validator-nodes) mints its *own* distinct LSU resource. When you stake [XRD](/contents/tech/core-protocols/xrd-token) to a validator you receive that validator's LSUs, representing a proportional claim on its underlying pool of staked XRD ([Radix Knowledge Base](https://learn.radixdlt.com/article/what-is-a-liquid-stake-unit-lsu-and-native-liquid-staking)). Because each LSU is validator-specific, its market value also reflects that validator's reliability and fee — LSUs from different validators are not interchangeable. Value accrues through the exchange rate rather than by rebasing balances: [emission rewards](/contents/tech/core-concepts/network-emissions) flow into the validator's staked pool each epoch, so a fixed quantity of LSUs redeems for progressively more XRD over time. ## Unstaking and Claim NFTs To unstake, you return LSUs to the validator component. It calculates the XRD they represent, moves that XRD into a separate "unstaked" pool, **burns** the LSUs, and mints a non-fungible [claim NFT](https://learn.radixdlt.com/article/how-to-stake-and-unstake-xrd) recording the amount and the epoch it becomes available. The XRD is not immediately withdrawable: a protocol-enforced unstaking delay of **2,016 epochs (≈ 7 days)** must pass before the claim NFT can be redeemed for XRD ([Knowledge Base](https://learn.radixdlt.com/article/how-long-does-it-take-to-convert-lsus-to-xrd-and-unstake)). Locked owner stake carries a longer 8,064-epoch (≈ 28-day) delay. ## Composability Because LSUs are [native resources](/contents/tech/core-concepts/asset-oriented-programming) rather than smart-contract wrappers, they move through the ledger with the same guarantees as XRD itself and can be used across DeFi while still earning staking rewards — as collateral on [Weft Finance](/ecosystem/weft-finance), in liquidity pools on [Ociswap](/ecosystem/ociswap), or managed via [ShardSpace](/ecosystem/shardspace). This native design avoids the wrapper-contract risk that affects liquid-staking derivatives on account-based chains.