Liquid Staking Incentives Amid Ethereum's Shapella Upgrade

DeFi ProtocolsApril 25, 2023, 9:35AM EDT
UPDATED: April 25, 2023, 5:22PM EDT
Liquid Staking Incentives Amid Ethereum's Shapella Upgrade
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Ethereum recently activated its largest upgrade since The Merge with Shapella, which enabled withdrawals of staked ETH and accrued ETH rewards for the first time in the network’s history.

The unlocking of staked ETH as a result of the upgrade could result in liquid staking derivative (LSD) protocols competing with one another in order to attract liquidity. ETH LSDs are liquid assets that represent staked ETH, such as stETH, rETH, cbETH and frxETH, among others.

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