Liquid Staked ETH (LsETH) is a token representing staked ETH plus network rewards. It allows users to maintain liquidity while staking ETH, providing on-chain transparency and robust diligence. LsETH is minted when ETH is staked and can be transferred, stored, traded, and utilized in decentralized finance (DeFi) while continuing to accrue network rewards. The token's conversion rate reflects the underlying staked ETH and accrued rewards, minus fees or penalties, and is not pegged 1:1 with ETH.
Liquid Staked ETH (LsETH) is a liquid staking token that represents staked ETH plus any accrued Ethereum network rewards, minus any fees or penalties. Here is how it is used:
- Staking and Minting: Users stake their ETH through the Liquid Collective protocol, which programmatically mints LsETH tokens as a receipt for their staked ETH.
- Liquidity and Transferability: LsETH tokens can be transferred, stored, traded, and utilized in decentralized finance (DeFi) and supported dapps, providing liquidity while the user's ETH is staked.
- Redemption: Once Ethereum withdrawals are enabled, users can redeem LsETH for ETH, with the conversion rate reflecting the accrued network rewards and any penalties.
- Capital Efficiency: Liquid staking improves capital efficiency by allowing users to stake ETH while maintaining liquidity, which can be used in other DeFi applications.
- Security and Governance: The Liquid Collective protocol implements robust security measures, including best-in-class node operators and DAO governance, to minimize slashing risk and ensure the integrity of the staking process.
Overall, LsETH provides a flexible and secure way for users to participate in Ethereum staking while maintaining control over their assets.
To store Liquid Staked ETH (LsETH) tokens, you can use supported platforms that offer custody services. These platforms include Coinbase Prime, where LsETH tokens are displayed as a separate asset within the portfolio page after staking ETH through the Liquid Collective protocol. Additionally, Blockdaemon integrates LsETH into its wallet product, providing secure custody and management of LsETH tokens.
To buy Liquid Staked ETH (LSETH) tokens, you can follow these steps:
Find a Reliable Exchange: Look for a trusted centralized exchange where you can purchase LSETH. Some popular options include Coinbase, Binance, and Uniswap V3 (Ethereum).
Create an Account: If you don't already have an account on the chosen exchange, sign up and complete any necessary verification steps.
Deposit Funds: Deposit the necessary funds (e.g., USD or other cryptocurrencies) into your exchange account.
Search for LSETH: Find the LSETH token on the exchange and select it for purchase.
Place an Order: Enter the amount of LSETH you want to buy and execute the trade.
Store Your Tokens: Once you have purchased LSETH, ensure you store them securely. You can use a cold wallet, such as a hardware wallet or a paper wallet, for long-term storage.
Remember to carefully review the exchange's fees, trading volumes, and market conditions before making your purchase.