Ethereum liquid staking derivatives

Ethereum liquid staking derivatives (LSDs) are financial products that allow investors to stake their Ether (ETH) while still retaining liquidity. When users stake ETH, they usually lock it up to contribute to the network's security and earn staking rewards. However, LSDs provide a mechanism whereby users can receive a token representing their staked ETH, which can be traded or used in other DeFi applications. This innovation enhances the utility of staked assets, enabling users to earn yield on their investments while maintaining the flexibility to access their funds.