Much has been made about the potential risks of liquid staking.
The work iqlusion has done in the staking module over the last year has been specifically designed to mitigate these risks. This work is covered under ADR-61
During the Three Arrows capital liquidation event, there was a substantial divergence between the price Lido’s staking derivative STETH. Many liquid staking protocols require substantial waits to process withdrawals and final settlement of the underlying stake token collateral. This enables a purely financial event like deleveraging to undermine the strategy tokens and subject liquidity providers to substantial loss.