How do Validator LSTs work?

During native staking, when a staker stakes your SOL, an account is created called a stake account. You can imagine it as like a locked block of SOL. This stake account is then delegated to the validator. When the staker unstakes their SOL, what happens is that their stake account needs to be deactivated (which takes an epoch). The staker then withdraws their SOL from the stake account.

A Validator LST is a liquid version of your stake account. First, SOL is deposited into the Validator LST pool, and a stake account is created. This stake account is then delegated. In return, the staker receives a Validator LST which represents their stake with the validator.