Liquid Staking Derivatives (LSD) in the Crypto Industry: A Guide to Lido Finance, Rocket Pool, SSV, ANKR, And FIS.

HuobiPublished on 2023-03-21Last updated on 2023-03-21

Abstract

Liquid Staking Derivatives (LSD) is a new type of crypto asset that offers traders the opportunity to benefit from the rewards of staking without actually holding the underlying token. In this article, we’ll introduce the importance of LSD, the benefits of trading Liquid Staking Derivatives, and a quick overview of top LSD tokens available on Huobi.

Liquid Staking Derivatives (LSD) is a new type of crypto asset that offers traders the opportunity to benefit from the rewards of staking without actually holding the underlying token. In this article, we’ll introduce the importance of LSD, the benefits of trading Liquid Staking Derivatives, and a quick overview of top LSD tokens available on Huobi.

Why LSD is Important:

""

The crypto industry is constantly evolving, and Liquid Staking Derivatives represent a new and innovative way for traders to participate in the crypto space. By allowing traders to stake but not necessarily holding the token,, LSDs offer a flexible and convenient way for traders to benefit from the rewards of staking.

""

Benefits of LSD:

""

There are several benefits of this asset class but today we will only highlight a couple of them below.

""

1. Increased liquidity: LSD allows investors to earn rewards from staking activities without having to lock up their assets for a long period of time. This increased liquidity can provide traders with more flexibility and opportunities to trade and earn rewards.

""

2. Higher returns: LSD can provide higher returns compared to traditional staking methods as the rewards are based on the price movements of the underlying assets in the liquidity pool. This means that traders can earn rewards not only from staking, but also from the appreciation of the assets in the pool.

Top LSD Tokens Available on Huobi:

""

1. Lido (LDO): Currently ranked #39 on CoinGecko with a market capitalization of $1,713,379,967, and a total value locked of $8.25b.

""

Lido is the current leader within LSD’s known as a decentralized platform that provides staking and liquidity services for decentralized finance (DeFi) applications. Lido’s goal is to provide a seamless and secure way for users to participate in the DeFi ecosystem and it has a huge market as of right now which is 74% per Defi Llama. It has no minimum for stakers as of right now.

""

LDO is the native token of the Lido ecosystem. The main use case of LDO token is for its holders to receive the governing rights as one LDO is counted as one vote. The more LDO tokens you hold, the more voting power you will have. Furthermore, the voting mechanism of the LDO token is adjustable and operable to other protocols.

2. Rocket Pool (RPL): Currently ranked #63 on CoinGecko with a market capitalization of $743,738,881, and total value locked of $629.48m.

""

Rocket Pool is a decentralized platform that provides staking services for Ethereum 2.0. It aims to make staking more accessible for smaller investors by pooling their resources and increasing their chances of being selected as a validator. With Rocketpool, users can earn rewards for participating in Ethereum 2.0 consensus without having to invest in expensive hardware or worry about the technicalities of staking.

""

RPL tokens are used by node operators to vote on protocol governance and serves as a form of insurance against staker and validator penalties or cuts. The RPL is subject to a 5% annual inflation rate, currently distributed as follows: 70% for node operators staking RPL.

3. SSV Network (SSV): Currently ranked #203 on CoinGecko with a market capitalization of $743,738,881.

""

SSV Network is a decentralized platform that provides a wide range of services for the DeFi ecosystem. The platform offers staking, liquidity, and lending services, and it is designed to provide users with an easy and convenient way to participate in the DeFi space.

""

SSV tokens are used to pay fees in the network. In addition, SSV acts as a reward mechanism: — Miners receive SSV from distributors to manage their validators and generate ETH rewards on their behalf.

4. ANKR Network (ANKR): Currently ranked #168 on CoinGecko with a market capitalization of $233,718,195 and total value locked of $164.62m.

""

Ankr Network is a decentralized platform that provides staking and cloud computing services. Ankr aims to provide a secure and scalable infrastructure for decentralized applications and services.

""

ANKR is an utility token with more than one use case. It can be used for staking, voting on governance proposals, and as payment for accessing services on the ANKR network, such as dApp and protocol deployment. ANKR also serves as a reward for stakers and network participants.

5. Stafi (FIS): Currently ranked #684 on CoinGecko with a market capitalization of $24,580,332.

""

Stafi is a decentralized platform that provides staking and liquidity services for the DeFi ecosystem. FIS is designed to provide users with an easy and convenient way to participate in the DeFi space.

""

The FIS token is utilized in the system for staking, transactions, and on-chain governance. As per the website, FIS provides security to the network by staking, paying for transaction fees on the StaFi chain, minting, and redeeming rTokens.

In conclusion, Liquid Staking Derivatives (LSD) represent a new and exciting opportunity for traders in the crypto industry. With the benefits of staking and liquidity combined, LSD allows for flexible and profitable trading strategies that were not possible before. As always “do your own research before investing, in any crypto digital asset.”

Related Reads

Without It, There Would Be No ImageNet... Now It's Gone

Amazon is shutting down its crowdsourcing platform, Mechanical Turk (MTurk), on September 30th, ending a 21-year run. Launched in 2005, MTurk connected businesses with a global online workforce to perform small, repetitive tasks—known as Human Intelligence Tasks (HITs)—that were easy for humans but difficult for computers at the time. At its peak, it hosted over 500,000 workers worldwide. MTurk played a pivotal, though often unseen, role in the rise of modern AI. Its most famous contribution was to the creation of the ImageNet dataset. In the late 2000s, researcher Fei-Fei Li and her team faced the monumental challenge of manually sorting and labeling millions of internet images to build a large-scale visual database for training AI. They turned to MTurk, distributing the work to nearly 50,000 workers from 167 countries. This "human-in-the-loop" effort made the massive ImageNet project feasible. ImageNet, in turn, became the foundational benchmark for the 2012 ImageNet Large Scale Visual Recognition Challenge. The victory of Geoffrey Hinton and his students' deep convolutional neural network, AlexNet, on this dataset dramatically demonstrated the power of deep learning, catalyzing the AI revolution that followed. Now, MTurk is closing. The platform has declined as the very AI it helped build has become capable of automating the simple tasks it once provided. Furthermore, the AI industry's data needs have evolved, shifting towards more specialized expertise for model tuning and evaluation, served by newer platforms. Ironically, some studies suggest MTurk workers themselves began using AI tools like ChatGPT to complete tasks, adding a layer of automation to the "artificial artificial intelligence" service. The shutdown marks the end of an era where human effort, distributed globally via the internet, laid the crucial groundwork for the intelligent machines of today.

marsbit13m ago

Without It, There Would Be No ImageNet... Now It's Gone

marsbit13m ago

Bill Gates' Latest Long-Form Article: The Real Trouble with AI is That We Aren't Ready

Bill Gates' latest essay, "The turbulent AI era is here. The choices we make now are critical," warns that society is unprepared for the profound social and economic transition AI will bring. While optimistic about AI's long-term potential in healthcare, education, and other fields, Gates focuses on the "transition period" over the next 10-20 years. He argues this transition differs from past technological shifts like the Industrial Revolution because AI automates cognitive labor itself, potentially reducing the total number of future jobs. Risks like enhanced cyber-attacks and social disruption are already emerging, not distant future threats. A key concern is "low-cost intelligence substitution," where AI performs defined tasks cheaper than humans, gradually thinning workforces. Gates introduces the concept of "Human Reserved" jobs—roles like nursing or delivering serious medical news—where human judgment and empathy should remain central, even if AI is technically capable. To manage the transition, he calls for new governance, stronger social safety nets, retraining, and international cooperation, especially between the US and China. Crucially, he proposes taxing AI usage and robots to slow displacement and fund social programs. The core dilemma Gates presents is that AI could become humanity's "greatest equalizer" or its "worst source of injustice," depending on whether its immense productivity gains are broadly shared or concentrate wealth and power. The fundamental challenge is not just advancing the technology, but adapting our social and economic systems to it.

marsbit29m ago

Bill Gates' Latest Long-Form Article: The Real Trouble with AI is That We Aren't Ready

marsbit29m ago

Just Now, Anthropic Unveils Physical MCP: Claude Begins Controlling the Real World

Anthropic has announced the Model Hardware Standard (MHS), a new standard enabling AI agents like Claude to safely control physical devices. Building on the Model Context Protocol (MCP), MHS standardizes communication between AI agents and hardware such as microscopes, robotic arms, and lasers, marking a significant step for AI from the digital into the physical world. Developed in collaboration with HHMI Janelia Research Campus, MHS uses standardized drivers to translate basic commands (e.g., read, write) into a format any programmable device can understand. This drastically reduces integration time from weeks to hours or minutes and allows agents to discover and operate new devices using natural language tags that describe machine properties and safety limits. Agents can control devices via MCP, command-line interfaces, or APIs. They can sequence operations, monitor results, adjust parameters in real-time, and generate deterministic scripts for long-running tasks. Early tests show Claude interacting with hardware exploratively, like a scientist, learning to calibrate a laser and scripting the process. Early adopters and partners include AWS, Automata, Danaher, Doosan Robotics, and Tecan, who are integrating MHS support into their platforms. While promising, challenges remain: Claude's physical reasoning is limited, requiring expert oversight, and MHS currently only works with programmable hardware. Anthropic plans further refinements and broader device support before open-sourcing the standard.

marsbit1h ago

Just Now, Anthropic Unveils Physical MCP: Claude Begins Controlling the Real World

marsbit1h ago

History's Only Asset with a 100% Win Rate After 4 Years of Holding

**Title: The Only Asset with a 100% Win Rate Over Any 4-Year Holding Period** This article analyzes which major, freely-tradable assets have historically never produced a nominal loss over any rolling 4-year holding window. It concludes that only two distinct categories achieve this: ultra-low-risk contractual assets and Bitcoin. Among traditional risk assets, none maintain a perfect 4-year record. The S&P 500 had negative 4-year periods (e.g., 1929-1932: -64.8%). The Nasdaq 100 fell roughly 60% from 2000-2003. Gold saw a ~47.7% loss from 1981-1984. US real estate declined about 23.3% from 2007-2010. Even long-term US Treasury bonds (e.g., 2021-2024: -19.8%) and corporate bonds can produce 4-year losses due to interest rate and market price risks. In contrast, the first category achieving 100% nominal success includes assets like rolling 3-month US Treasury Bills, 4-year certificates of deposit (CDs), and US Treasuries held to maturity within 4 years. Their "guarantee" stems from contractual obligations and credit backing (e.g., FDIC insurance, US sovereign promise), not price appreciation. The sole exception in the high-risk category is Bitcoin. Analysis of daily data from 2010-2026 across 4,419 rolling 4-year windows shows a 100% positive return rate. The worst 4-year period (April 2021 to April 2025) still yielded a +32.6% total return (~7.3% CAGR). This record is unique because Bitcoin has no issuer, promises no cash flows, and has endured severe drawdowns (70-90%), yet its market price has always recovered within a 4-year span. The key distinction is the source of the "100%": contractual assets offer known, low nominal returns, while Bitcoin's record stems purely from historical price appreciation despite extreme volatility. The article suggests that for Bitcoin, the ability to hold for 4+ years is more critical than active trading strategies.

marsbit1h ago

History's Only Asset with a 100% Win Rate After 4 Years of Holding

marsbit1h ago

How One Article Moved 45 Billion: The Collapse of a 25-Year-Old 'AI Stock Guru'

This article details the dramatic rise and near-collapse of a hedge fund built by Leopold Aschenbrenner, a 24-year-old former OpenAI researcher. The fund, named Situational Awareness, amassed $45 billion in assets within two years. Its explosive growth stemmed from Aschenbrenner's influential 165-page manifesto predicting AGI's arrival by 2027 and his high-profile Silicon Valley connections. The fund employed an extremely aggressive strategy: high concentration and 400% leverage to bet long on AI infrastructure stocks while shorting legacy software firms. In July, this structure backfired when both sides of the trade reversed simultaneously—AI stocks plunged while shorted stocks rallied—triggering massive losses that nearly wiped out all equity. Major player Jane Street reportedly lost billions. The fund's leveraged public portfolio was ultimately sold at a discount to Citadel. The SEC is now investigating banks like Goldman Sachs for their role in facilitating the fund's high-leverage trades. The article compares this to past blow-ups like Archegos, highlighting systemic failures in risk management where the pursuit of short-term profits overrode due diligence. It questions whether such risky leverage concentrated in the AI sector, currently at record highs, poses a broader systemic threat. Ironically, Aschenbrenner, who studied AI safety at OpenAI, designed a fund structure prone to uncontrolled failure. Days after the crisis, he reportedly raised another $400 million for new investments.

marsbit1h ago

How One Article Moved 45 Billion: The Collapse of a 25-Year-Old 'AI Stock Guru'

marsbit1h ago

Trading

Spot
活动图片