The Risks of LSD - HackMD

# The Risks of LSD ### Liquid Staking Derivatives cannot safely exceed consensus thresholds Liquid

The Risks of LSD - HackMD # The Risks of LSD ### Liquid Staking Derivatives cannot safely exceed consensus thresholds Liquid staking derivatives (LSD) such as Lido and similar protocols are a stratum for cartelization and induce significant risks to the Ethereum protocol and to the associated pooled capital when exceeding critical consensus thresholds. Capital allocators should be aware of the risks on their capital and allocate to alternative protocols. LSD protocols should self-limit to avoid centralization and protocol risk that can ultimately destroy their product. *Note, although current

related reading

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