Kyle Doane, head of trading at Arca, said he expects staking to eventually move more towards decentralized protocols.
While centralized exchanges such as Coinbase and Binance.US pool client assets and manage validators on behalf of these assets, liquidity staking providers such as Lido, Rocket Pool, and StakeWise use Ethereum smart contracts to create liquidity, tokens that stake ETH version.
The utility of liquid collateralized derivatives will only continue to increase in DeFi, making DeFi protocols ultimately a more efficient avenue.