Liquid Staked ETH (LSETH) is a unique digital asset that operates on the Ethereum platform. It represents a new approach to staking in the digital asset world. When users stake their Ethereum (ETH) through the Liquid Collective protocol, they receive LSETH as a receipt token. This token evidences their legal and beneficial ownership of the staked ETH, along with any network rewards that accrue to the staked ETH, minus protocol service fees and network slashing penalties, if any. The LSETH token is based on the Ethereum ERC-20 cToken model, which uses a floating conversion rate to reflect the value of accrued network rewards, penalties, and fees associated with the staked tokens.

When a user deposits ETH into the Liquid Collective protocol, they receive LSETH in return. This LSETH token represents their ownership of the staked ETH and any network rewards that accrue to the staked ETH. The conversion rate between LSETH and ETH is not fixed and can increase over time as the underlying staked ETH accrues more rewards. This conversion rate is determined by the Ethereum network and not by the Liquid Collective protocol. The LSETH tokens can be transferred, stored, traded, and utilized in decentralized finance (DeFi) or supported decentralized apps (dApps), providing users with increased liquidity and capital efficiency.

LSETH has several potential use cases in the digital asset space. Firstly, it can be held by users to accrue network rewards. Secondly, it can be exchanged for another token, providing users with flexibility in their digital asset portfolio. Lastly, LSETH can be used as collateral to participate in a wide range of DeFi activities. This allows users to leverage their staked ETH without having to liquidate their position, thereby maintaining their participation in the Ethereum network's consensus mechanism.

Liquid Staked ETH is a product of the Liquid Collective protocol. The Liquid Collective is a collective of web3 teams that strive to create an enterprise-grade liquid staking standard. The protocol was designed to meet the needs of institutions and is governed in a decentralized manner by a broad and dispersed community of industry participants. The protocol's source code is intended to be made fully public, demonstrating the collective's commitment to transparency and openness. The Liquid Collective protocol has undergone multiple audits from security experts to ensure its robustness.