Searching for Alpha: unshETH

Proof-of-stake (PoS) has become a major consensus mechanism for decentralized blockchains to achieve distributed consensus. However, the convenience, liquidity, and network effect of liquid staking derivatives (LSDs) means that market participants would increasingly opt for the largest LSD protocols instead of alternatives such as smaller protocols or solo staking. 

For instance, over 31% of ETH staked on Ethereum is deposited from Lido, the largest LSD protocol with a market share of 74.5%. Coinbase, the second largest LSD protocol by value locked, only has a market share of 15.2%.