Viscous

The viscous type is generally simpler because it relies on hydrodynamic friction from fluids with high viscosity. Silicone-based oils are often used. Here, a cylindrical chamber of fluid filled with a stack of perforated discs rotates with the normal motion of the output shafts. The inside surface of the chamber is coupled to one of the driveshafts, and the outside coupled to the differential carrier. Half of the discs are connected to the inner, the other half to the outer, alternating inner/outer in the stack. Differential motion forces the interleaved discs to move through the fluid against each other. In some viscous couplings when speed is maintained the fluid will accumulate heat due to friction. This heat will cause the fluid to expand, and expand the coupler causing the discs to be pulled together resulting in a non-viscous plate to plate friction and a dramatic drop in speed difference. This is known as the hump phenomenon and it allows the side of the coupler to gently lock. In contrast to the mechanical type, the limiting action is much softer and more proportional to the slip, and so is easier to cope with for the average driver. New Process Gear used a viscous coupling of the Ferguson style in several of their transfer cases including those used in the AMC Eagle.

Viscous LSDs are less efficient than mechanical types, that is, they "lose" some power. In particular, any sustained load which overheats the silicone results in sudden permanent loss of the differential effect.[5] They do have the virtue of failing gracefully, reverting to semi-open differential behaviour. Typically a visco-differential that has covered 60,000 miles (97,000 km) or more will be functioning largely as an open differential; this is a known weakness of the original Mazda MX-5 (a.k.a. Miata) sports car. The silicone oil is factory sealed in a separate chamber from the gear oil surrounding the rest of the differential. This is not serviceable and when the differential's behaviour deteriorates, the VLSD centre is replaced.

Geared LSD

Geared, torque-sensitive mechanical limited slip differentials utilize helical gears or worm gears to "sense" torque on one shaft. The most famous versions are:

Torsen differential based upon the Dual-Drive Differential invented by Vernon Gleasman in 1958, then later sold to Gleason Corporation, who started marketing it in 1982;
Quaife differential, sold under the name Automatic Torque Biasing Differential (ATB), covered by European Patent No. 130806A2.
Eaton Corporation differential, sold under the name Eaton Detroit Truetrac.
Geared LSDs wear the gears and their supports rather than the clutches of the clutch type and the cones of the cone type, but both output shafts have to be loaded to keep the proper torque distribution characteristics. Once an output shaft becomes free (e.g., one driven wheel lifts off the ground; or a summer tire comes over ice while another is on dry tarmac when the car goes uphill), no torque is transmitted to the second shaft and the torque-sensitive differential behaves like an open differential.

Geared LSDs are dependent on the torque and not on the speed difference between the output shafts. Such differentials may not be adequate on extremely slippery surfaces such as ice (or thin air, when a drive wheel loses ground contact altogether).[4]

Geared LSDs may be used:

to reduce torque steer in front-wheel drive vehicles;
as a center differential in four-wheel drive (e.g., on the Audi Quattro);
in rear-wheel drive vehicles, to maximize traction and make oversteer easier to manage (as in drifting). Although, for extreme drifting, a geared LSD is less effective compared to a clutch type LSD.