Top Liquid Staking Protocols to Watch as ETH Shanghai Upgrade Nears

Top Liquid Staking Protocols to Watch as ETH Shanghai Upgrade Nears

By KuCoin Blog | KuCoin Weekly Review | 11 Apr 2023


Ethereum's journey towards becoming a more efficient ecosystem for decentralized applications (dApps) is reaching another critical milestone with the upcoming ETH Shanghai upgrade. This highly anticipated hard fork to the Ethereum mainnet is expected to improve its scalability, security, and efficiency. The upgrade will also allow users to unlock their staked ETH from the network, making it more accessible for other purposes, such as DeFi loans or trading.

Liquid staking protocols are expected to play a significant role in the upgrade, making ETH staking more accessible by lowering entry barriers and letting small investors stake their tokens without locking up liquidity. Since the Beacon Chain started supporting ETH staking in December 2020, liquid staking has become a popular way for ETH holders to participate in Ethereum's PoS consensus mechanism. With the Shanghai upgrade, liquid staking protocols are likely to garner significant attention among investors in the run-up to the upgrade and shortly after that.

Check out the top liquid staking protocols to watch as we approach the Ethereum Shanghai upgrade. 

Liquid staking offers a flexible and accessible alternative to traditional staking methods, reducing the complexity and risks associated with self-staking and exchange staking and promoting wider participation in the Ethereum network. Users can stake any amount of ETH without having to meet the minimum threshold of 32 ETH required for self-staking, making staking as simple as a token swap. These protocols also eliminate the need for users to send their tokens to an exchange and trust the exchange to manage the staking process and their holdings, making it less complex.

Liquid staking protocols are expected to play a significant role in the upgrade, making ETH staking more accessible and flexible for users. They have lowered the entry barrier to ETH staking, allowing more users to participate in the staking activities on the PoS Ethereum network and earn rewards.

In our previous blog posts, learn more about the Ethereum Shanghai update and the ETH price prediction after the Shanghai/Capella upgrade


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