When a user stakes some amount of tokens (such as LINK), they receive liquid derivative tokens (such as stLINK) at a 1:1 ratio.
These derivative tokens represent a user’s staked balance and must be burned to withdraw the underlying tokens they represent.
Once tokens have been staked into the pool, they are deposited into one or more strategy contracts controlled by the pool. These strategies then take the deposited tokens and use them to earn rewards which are distributed to stakers.

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