The launch of Ethereum's Beacon chain in December 2020 brought staking rewards to validators but required a hefty 32 ETH stake, prompting the emergence of pooled staking and Liquid Staking Derivatives (LSDs). By August 2023, LSD protocols accounted for 43.7% of the total 26.4 million ETH staked. Post-Shapella, LSD staking surged, causing long entry queues while exit queues remained minimal. Top 8 LSDs yielded an average of 4.4% APY since January 2022, with Frax leading. However, yields are expected to decrease as more ETH is staked. LSDs have distributed about 100,000 ETH in quarterly staking rewards, capturing over half of all ETH emissions since late 2022. This growth has given rise to LSDFi, with Lybra, Pendle, and EigenLayer dominating the sector, growing by 58.7x since January 2023. Despite these gains, concerns about cartelization and concentration loom, prompting debates about self-limitation within the protocol and LSDs. Join us as dive into the realm of ETH liquid staking, how LSDs have become one of the largest segments in DeFi, as well as the growth of the LSDFi sector.