Liquid staking derivatives, or LSDs, are tokens that represent staked assets, such as Ethereum, and allow users to unlock liquidity while still earning staking rewards. With the Proof-of-Stake model, users can earn rewards by staking their assets, but the staked assets are locked and cannot be withdrawn until a later date. Liquid staking providers allow users to receive LSD tokens for their staked assets, which can be used in decentralized finance (DeFi) activities such as selling, providing liquidity, lending, and using as collateral, to earn additional yield on top of staking rewards.