Liquid staking has become foundational infrastructure for proof-of-stake networks. Over $50 billion in ETH alone sits in liquid staking protocols, and the model has expanded to Bitcoin, Solana, Polkadot, and dozens of other chains. Restaking protocols like EigenLayer have added another layer, creating liquid restaking tokens (LRTs) that represent staked-and-restaked positions.

The problem is pricing. Most LSTs trade on a handful of DEX pools with limited liquidity. A stETH/ETH pool on Curve might show a 0.5% depeg during a large sell event, but the underlying staking contract still guarantees 1:1 redemption at the protocol level. An oracle that reports the market price during that depeg triggers unnecessary liquidations in lending protocols. One that ignores the depeg misses genuine risk signals.

The solution requires dual pricing: a fundamental fair value derived from the protocol’s own smart contracts, and awareness of when market conditions deviate significantly from that fundamental. DIA’s xLSD methodology does exactly this. It reads the collateral ratio directly from the staking protocol’s contract, multiplies it by the underlying asset’s market price, and delivers a risk-adjusted fair value that reflects what the LST can actually be redeemed for.

For restaking tokens and more complex staked derivatives, the same principle applies. DIA reads the deposit contract, verifies backing, and computes intrinsic value from onchain data rather than relying on sparse secondary market activity.