I saw LSD and had to see what was up, lol. I don't trust all the liquid staking stuff myself. Just seems like a big ole ponzi to me, but I get where it's nice to be able to actually move stuff around and still earn staking rewards. My old company was one of the first Stride validators, but I got away from the Cosmos space, lol.
There's for sure a high risk. I'm just waiting for one of these places to take all of the ETH and simply close up shop or their liquid token to zero out. FAR too much risk over reward for me.
Oh yeah, but people are going to pile into things like that because, well, people are inherently stupid, lol, or they just like the pain on losing money because of investing into super risky investments. Layer 1 crypto alone is risky enough, lol.
Which goes back to the age old marketing saying. Don't tell people what they should want, instead just give people what they want.