Liquid Staking Derivatives (LSD) and What to know about the upcoming Shanghai Upgrade

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    The Datafi
    Published on
    · 2 min read
  • Shanghai Upgrade in March 2023 will make a few significant changes to Liquid Staking Derivatives (LSD) protocols, which will lead to notable price changes. Datafi has found and collected some important on-chain information about these protocols.

    - LSD-protocol tokens benefited from the current Shanghai Upgrade narrative.

    - The upgrade offers a better option which will increase ETH staking demands.

    - There will be a move of staked ETH between LSD protocols.

    - ETH staking services look promising.

    Recently, Liquid Staking Derivatives (LSD) protocol tokens have seen a rapid rise benefiting from the upcoming Shanghai Upgrade narrative in March 2023. Staking-as-a-service protocol tokens such as LDO, FXS, RPL and SWISE have been top buys on DEXs for the past 3 days.

    Group 76 (2).png

    Overview on some leading LSD protocols.

    Hình ảnh

    LSD-protocol tokens lead top net buy on DEXs.

    Previously, selling staked ETH required using staking services of LSD protocols (selling derivative tokens like stETH or rETH), with several % of slippage.

    The upgrade will offer a safer option: withdrawing ETH from the staking pool. This increases ETH staking demands.

    Since ETH can now be unstaked from staking-as-a-service protocols like Lido, RocketPool, Ankr, Stake Wise, there will also be a move of staked ETH between LSD protocols and to protocols with more attractive APY levels.

    Currently, staked ETH on ETH's beacon chain only makes up 15%, very low compared to other chains.

    Shanghai Upgrade is an event happening in March 2023. It aims to showcase the latest advancements in technology, especially in the field of AI. The event will bring together experts, companies and thought leaders from around the world.