---
title: "Liquid Stake Units (LSUs)"
path: "/contents/tech/core-concepts/liquid-stake-units"
version: "1.2.0"
author: "Hydrate"
createdAt: "2026-02-18T22:38:09.869Z"
updatedAt: "2026-03-16T18:20:57.729Z"
---

# Liquid Stake Units (LSUs)

<Infobox>
| **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. |
</Infobox>

## 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).