> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/developer/assets/btc-lst-token.md).

# BTC LST token

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Note: This chapter is currently under development.
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When the user joins the Covenant BTC yield program, Covenant gives the user a special token called the Covenant BTCLST (short for Liquid Staking Token).

This BTC LST represents the channeled BTC that's locked in the Covenant yield program.

The BTC LST is liquid, and the user can make it work right away for gaining additional profit while their BTC yield keeps earning.

### Key benefits of the Covenant BTC LST

* Keeps self-custody - The Covenant user holds the keys to their BTC LST, their channeled BTC and their original BTC that stays safe in the UTXO on Bitcoin.
*  100% ownership and 1:1 backing is transparent - The user' ownership and 100% backing is transparently verifiable on-chain.
* No lock-ups hurt liquidity - The BTC LST lets the user to move, trade, or use it freely.
* Real BTC yield and additional opportunities - The yield is actual BTC (not synthetic tokens), and extra DeFi rewards can be in any other assets.
* Works across networks - Covenant lets the user take the BTC LST to other ecosystems, DeFi projects or chains for more opportunities with keeping 100% ownership and backing transparency via channels.
* Transparent & deterministic - Everything is programmable and automatic via smart contracts, visible on-chain, no middleman.

### How does Covenant BTC LST amplifies the opportunities?

1. Bob has locked his channeled BTC asset in Covenant system yield program.
2. Bob's channeled BTC is already earning real BTC yield in Covenant's yield module (from the  Covenant system native processes).
3. At the same time, Bob now has their Covenant BTC LST in their wallet.
4. Now Bob can take that BTC LST and participate in other DeFi activities, like:
   * Using it on Covenant system or move it to other ecosystems/networks to earn interest.
   * Using it as a collateral.
   * Trading or swapping it on different chains/ DeFi ecosystems.
   * Joining more yield farms, staking pools and other investment opportunities elsewhere.

All this happens while Bob's Covenant BTC yield position keeps growing and his original BTC is self-custody deposited on Bitcoin. Covenant system' BTC LST makes the BTC more productive - it earns yield on Covenant system and can be used in extra opportunities in the bigger DeFi world - all while the user stays in control.