Liquid Staked ETH (LsETH) is the receipt token programmatically generated when users stake ETH through the Liquid Collective protocol. LsETH is a fungible receipt token based on the Ethereum ERC-20 cToken model. When a user deposits ETH to the Liquid Collective protocol, they receive LsETH that evidences their legal and beneficial ownership of the staked ETH as well as any network rewards that accrue to the staked ETH minus protocol service fees and network slashing penalties, if any.LsETH implements the cToken model, which uses a floating conversion rate – a.k.a. the protocol conversion rate – between a receipt token and the staked tokens to reflect the value of accrued network rewards, penalties, and fees associated with the staked tokens. The conversion rate is the amount of ETH for which LsETH can be converted. The conversion rate is independent of the price at which ETH or LsETH may trade on the open market.