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Liquid Staking Will Supercharge Cosmos DeFi | Aidan Salzmann, Riley Edmunds (Stride's Co-Founders)

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The Importance of Devaluation for LSTs

Q: How do you guys view the price of an LST? Should that be pegged to 1.0 at all times, or should longer withdraws lead to this liquidity discount? And then on the MEV piece, I've heard you guys talk about this briefly, but I'd love to really dive in here. You have this unique opportunity to auction off instant redemption rights. Q: It honestly deserves a full research paper. But our rough sense is it's very important for LSTs to trade close to the peg.

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