When asked, “What problem does liquid staking actually solve?”
I usually answer like this: Tokens representing staked assets are called liquid staking tokens (LSTs), such as Lido’s stETH and Binance’s WBETH. The risks of liquid staking are cumulative: contract vulnerabilities, slashing of node operators, and depegging on the secondary market. If you use it to leverage your position, there’s also the risk of liquidation.
$LDO 0.3708（-3.71%）
Were you already familiar with this point?
#LDO
I usually answer like this: Tokens representing staked assets are called liquid staking tokens (LSTs), such as Lido’s stETH and Binance’s WBETH. The risks of liquid staking are cumulative: contract vulnerabilities, slashing of node operators, and depegging on the secondary market. If you use it to leverage your position, there’s also the risk of liquidation.
$LDO 0.3708（-3.71%）
Were you already familiar with this point?
#LDO