Someone asked: What problem does liquid staking actually solve?
I usually answer this way: Tokens representing staked assets are called liquid staking tokens (LSTs), such as Lido’s stETH and Binance’s WBETH. The price of an LST on the secondary market doesn’t necessarily match the ETH backing it: redeeming through the protocol requires waiting in a queue, and when many people are in a hurry to sell, the price can easily trade at a discount.
$LDO 0.3756
What do you think? Feel free to discuss in the comments.
#LDO
I usually answer this way: Tokens representing staked assets are called liquid staking tokens (LSTs), such as Lido’s stETH and Binance’s WBETH. The price of an LST on the secondary market doesn’t necessarily match the ETH backing it: redeeming through the protocol requires waiting in a queue, and when many people are in a hurry to sell, the price can easily trade at a discount.
$LDO 0.3756
What do you think? Feel free to discuss in the comments.
#LDO
