what's LSD?

LSD is a liquid staking protocol built on the Solana blockchain, designed to enable SOL holders to stake their tokens while maintaining liquidity. Users deposit SOL and receive LSD tokens as liquid staking derivatives (LSDs), which represent their staked assets plus accruing rewards. These LSD tokens can be used across Solana's DeFi ecosystem for lending, borrowing, trading, or other yield-generating activities without waiting for unstaking periods. The protocol optimizes staking by partnering with Solana validators to maximize rewards and security. It employs a non-custodial model where LSD tokens are minted upon deposit and burned upon redemption, ensuring 1:1 backing by staked SOL. This setup enhances capital efficiency, reduces opportunity costs of staking, and supports Solana's high-throughput environment for seamless integration with DEXs, liquidity pools, and other protocols.

LSD generates revenue via 3% staking reward fees and 1% instant unstaking fees.