Categorizing LSTs

LSTs can be broadly categorized into two types:

Rebase LSTs: Granting holders an increasing number of tokens as staking rewards accrue.

Non-Rebase (Value-Accruing) LSTs: The value of non-rebasing LSTs owned by holders increases as staking rewards accumulate, eliminating the need for additional token transfers.

While rebase tokens currently dominate the ecosystem, as seen with stETH's significant 74% market share, non-rebase LSTs like Binance's WBETH, Rocket Pool's rETH, and Swell's swETH offer alternative models.