unshETH is a liquid staking derivatives protocol that aims to act as a router and liquidity hub for LSDs, all in one -- stakers can access the best yield via unshETH, and LSDs can tap into a liquidity hub for both incoming deposits of staked ETH, and liquidity for their LSDs.
unshETH is an ERC-20 token on Ethereum that allows users to deposit their LSDs and lock them into vdMining to earn ownership of the unshETH DAO. The stake locked function is used for depositing LSDs into the vdMining pool. These locked LSDs will be staked until the planned Shanghai upgrade (March 31) after which users will have the option to exit or migrate into the VDOs that will be launching. The incentive for migrating into the VDO pools is that users will retain their user-specific yield multiplier as they move into the VDOs, gaining an advantage. The yields generated from vdMining are collectively shared among all users, with the reward multiplier increasing as the deposited LSDs align more closely with the "optimal decentralization ratio". The "optimal decentralization ratio" is determined by the unshETH community through governance proposals and can be adjusted over time.