A limited-slip differential (LSD) is a type of differential that is designed to transfer power to the wheel with the most traction, while still allowing both wheels to rotate at different speeds. This is in contrast to an open differential, which allows the wheel with less traction to spin freely, resulting in power loss and reduced traction. LSDs provide increased traction and stability, particularly in slippery or uneven terrain, by limiting wheel spin and improving power delivery to the wheels. This can result in improved acceleration, cornering, and overall vehicle performance.