LIQUID STAKING TOKEN DESIGN

Summary from the TLDR Crypto newsletter

This report covers the concept of two-tiered staking for Ethereum. The mechanism separates staked Ethereum into two groups, slashable node operator bonds and non-slashable delegated stake, each earning different rates. The two-tiered system allows for more capital efficiency and removes slashing risk for delegated stakeholders. However, it raises questions about interest rate sensitivity, further centralization, implications of having all Ethereum staked, and possible dynamic setting for interest rates.