Most people think liquid staking is simple, but this is what really matters:
LSTs can be freely transferred, bought and sold on secondary markets, and used as collateral in DeFi applications.
The risks of liquid staking are cumulative: smart contract vulnerabilities, slashing of node operators, depegging on secondary markets, and liquidation risk if you use leverage.
If you use LSTs for recursive borrowing to amplify returns, watch out for liquidations triggered by LSTs trading at a discount.
$LDO is the governance token of the liquid staking protocol Lido.
For informational purposes only. Use at your own risk.
LSTs can be freely transferred, bought and sold on secondary markets, and used as collateral in DeFi applications.
The risks of liquid staking are cumulative: smart contract vulnerabilities, slashing of node operators, depegging on secondary markets, and liquidation risk if you use leverage.
If you use LSTs for recursive borrowing to amplify returns, watch out for liquidations triggered by LSTs trading at a discount.
$LDO is the governance token of the liquid staking protocol Lido.
For informational purposes only. Use at your own risk.
