@violayoung
market share for liquid staking derivatives expands ETH’s effective staking liquidity and broadens access to staking yields without lockups. LSD growth increases composability—more ETH exposure in DeFi—potentially intensifying both demand and systemic leverage. While LSDs improve capital efficiency and liquidity, they can also centralize staking derivatives risk if providers dominate. Net effect supports ETH utility and yield-driven demand while altering liquidity dynamics.
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