# Enhancing LST Flexibility for DeFi Compatibility ### **Challenge** **Reward-Based LSTs** in Babylon which gets different tokens as yield from various POS network over time, face compatibility issues in DeFi environments. Many DeFi protocols require more trackable fiat systems for accurate lending, borrowing, and liquidity calculations. Additionally, Bitcoin’s limited scripting capabilities limiting the flexibility of LSTs. ### **Nativerse Solution** To overcome these challenges, Nativerse’s **LST Optimizer Tool** transforms **reward-based LSTs** (e.g., **satBTC**) into **yield-bearing LSTs** (e.g., **wsatBTC**). Instead of getting different tokens as a yield, Nativerse's yield-bearing LSTs swapping those tokens with BTC and adding all those yields back to the pool thus aligning better with DeFi requirements for facilitating the fiat tracking and predictable token behaviors. This transformation not only enhances seamless integration with DeFi but also allows BTC stakers to earn yields in BTC and automatically compound the value of their staked assets over time. By Nativerse enables trustless BTC staking that meets the demands of modern DeFi use cases while maintaining the integrity and user experience of the BTC stakers. --- # 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://nativerse.gitbook.io/docs/getting-started/our-approach-to-addressing-key-challenges/enhancing-lst-flexibility-for-defi-compatibility.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.