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June 9, 2023
Liquid staking is a rapidly growing alternative to locking up a user's tokens and contributing to the security of proof-of-stake blockchains. In short, Liquid Staking Derivative (LSD)/ Liquid Staking Token (LST) protocols simplify the general public's participation in Ethereum staking and earn both consensus layer yield and execution layer yield. Furthermore, LSD/LST protocols provide a relatively liquid solution for the general public to exit their staking position, without being subject to the withdraw queue of the Ethereum consensus layer.
This article mainly focuses on LSTs in the Ethereum ecosystem and shares our research on how these protocols work, as well as our thoughts on the current state of the LST sector.