Executive summary: The Ultimate Guide to Ethereum Liquid Staking in 2023
ETH liquid staking derivative providers are pumping in early 2023. In this article, I explain why and how you can benefit from Ethereum liquid staking.
What you will learn:
- How liquid staking derivatives work, why they are a major narrative in 2023, and how to take advantage of them.
- Liquid staking derivatives allow you to stake a derivative of your staked ETH and receive yield twice.
- Researchers expect Ethereum's staking ratio to increase significantly once withdrawals from Ethereum staking are enabled.
- The Ethereum Shanghai Upgrade will unlock withdrawals, but their impact may not be strong enough to lead to significant selling pressure.
- Several providers exist on the market, with Lido a clear market leader among the decentralized providers.
- There are several factors to take into account when choosing a liquid staking provider.
- Liquid staking providers have different reward mechanisms: rebasing tokens, value-accruing tokens, and a two-token model.
- There are more than half a dozen viable providers to choose from.
- Staking strategies can range from safe stablecoin strategies to degen strategies.