# Liquid Staking Tokens (LST) **Liquid Staking Tokens** (LSTs), like tsTON from [Tonstakers](https://tonstakers.com/) or stTON from [bemo](https://bemo.fi/), represent the value of your staked assets (TON) but are portable and accessible, allowing you to use them in DeFi protocols like [TONCO DEX](https://app.tonco.io/) to **earn additional yield** while still receiving staking rewards. On TONCO DEX, you can provide liquidity with LSTs in a **concentrated liquidity pool**. This means you can target specific [price ranges](https://github.com/cryptoalgebra/tonco-gitbook/blob/main/benefits/broken-reference/README.md)**,** maximizing your capital efficiency and **earning more trading fees** compared to traditional V2 pools on other DEXes like STONfi and DeDust. ## Сoncentrated Liquidity vs. Full-Range Liquidity In a V2 pool, liquidity is spread across the entire price range from 0 to ∞, but with TONCO’s concentrated liquidity, you can **set a narrow range** around the current price, ensuring more of your liquidity **is used** for trades, resulting in **higher trading fees** and **a** **higher APR**. tsTON and stTON are **reward-bearing tokens**, that represents your staked TON, including returns from staking. As staking rewards are received, tsTON (stTON) increases in value, **without any change** to the quantity of tokens. *For example, if the current price of stTON is 1.2 TON and the net staking yield is 5% per year, after one year, 1 stTON will be worth 1.26 TON (1.2 + 0.06)* tsTON and stTON are **fully backed** by the staking pool, consisting of TON tokens participating in validation. This ensures there is **no risk of a depeg**, meaning the price deviation from its fundamental value is eliminated. This makes concentrated liquidity **especially effective** for the tsTON/TON and stTON/TON pair, where you can confidently **set a narrow range** around the current price to maximize capital efficiency. {% hint style="info" %} Average APR on TONCO LST pools is about **10x greater** than on the traditional V2 DEXes {% endhint %} ## Liquidity provision cases for LSTs on TONCO ### tsTON/TON and stTON/TON pairs With tsTON or stTON being a yield-bearing token that grows in value, its price is **directly linked** to TON. By setting **a narrow price range** around the current price, you ensure that more of your liquidity is [**active**](/price-ranges/price-moves-in-ranges.md#active-liquidity) in trades:

This approach leads to higher trading commissions and a higher APR compared to V2 DEXs. ### tsTON/USDT and stTON/USDT pairs #### **Liquidity in ranges** Price range represents the price window where liquidity is concentrated and trades are executed. If the **price moves outside** the selected range, the position **stops earning fees** and becomes [inactive](/price-ranges/price-moves-in-ranges.md#inactive-liquidity). — Use the presets or manually set minimum and maximum prices according to your strategy. — A smaller range offers higher yield but higher risk of the price moving outside the selected range. — The closer your range is to one side of the market price, the more of that specific asset you’ll provide. {% hint style="info" %} When choosing a price range, consider how much you expect the prices to fluctuate while holding your position. Also, think about how much time and effort you’re willing to spend managing your position as market conditions change, and be aware of any network fees associated with making adjustments {% endhint %}

**Single-sided liquidity** Single-sided liquidity on TONCO is a powerful feature that lets you **allocate liquidity on one side** **of the market**, either above or below the current spot price, depending on your strategy. With this option you can apply a range order strategy. A range order is like setting **a limit order** but with an added advantage—you earn fees instead of paying them. This strategy works well with **volatile/stable** asset pairs (like tsTON/USDT or stTON/USDT). When you want to sell, input **single-sided liquidity** in the volatile asset (tsTON or stTON). If the price rises above your set range, your assets will convert to the stable asset (USDT), and you can **exit** (close your position):

Single-sided liquidity on TONCO for selling stTON

For buying tsTON or stTON at a specific price, reverse the process: use **single-sided liquidity** in the stable asset, and set your buying range. When the price drops below your range, your assets convert to the volatile asset (tsTON or stTON), allowing you to exit:

Single-sided liquidity on TONCO for buying stTON

This flexibility, combined with concentrated liquidity, maximizes your capital efficiency and earnings potential. Explore the [detailed strategies](/concentrated-liquidity-playbook/basic-strategies.md) in the following pages and check out [our guide](/concentrated-liquidity-playbook/hedging-with-eeva.md) on hedging risks by using EVAA lending platform. ### any token/tsTON (stTON) Creating a pool for **any token** paired with tsTON or stTON is **highly profitable** on TONCO. The reason? The value of tsTON and stTON is tied to TON, and it grows with the staking APY (approx. 3.50% as of December 27th). You benefit from the consistent increase in tsTON's (stTON’s) value as it reflects the staking returns of TON. This means higher capital efficiency and increased yield for liquidity providers.

By choosing a **token/tsTON (stTON)** pair instead of **token/TON** when [creating a pool](https://app.tonco.io/#/create-pool), liquidity providers can earn additional income **without** taking on new risks. At TONCO, we offer free token listing and additional listing bonuses. We’ll guide you in placing liquidity efficiently to maximize your returns. Fill out [the form](https://forms.gle/n4rgcjZvPnomdGye6) to connect with us. ## Benefits for traders and LPs — TONCO ensures minimal price impact, allowing you to trade large volumes of LSTs with almost zero slippage due to its concentrated liquidity in narrow price ranges. — TONCO significantly reduces [impermanent loss ](/price-ranges/impermanent-loss.md)for [tsTON/TON](https://app.tonco.io/#/pool/EQB-Y21qDIdfIjnNfsWjDlfOoWke30pYKCEe8C0ELRGFqIhV) or [stTON/TON](#stton-ton-pair) pair, making it a safer and more profitable choice. Concentrated liquidity offers a more secure environment by maintaining stable asset values, protecting LPs from market volatility. — High trading volumes due to low slippage result in higher fee earnings for liquidity providers, making it an attractive option for both traders and LPs. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.tonco.io/benefits/liquid-staking-tokens-lst.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.