Balancing Safety and Returns in Institutional Cryptocurrency Investments

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The chapter explores the cautious approach of institutions towards cryptocurrency investments, focusing on safety, liquidity, and regulatory compliance over high returns. It delves into the challenges of presenting proof-of-stake to institutions and the potential impact of ETFs on staking. Various proposals regarding Ethereum's staking mechanisms, the importance of aligning stakeholders, and optimizing for censorship resistance are discussed, highlighting the need to balance decentralization, security, and network dynamics.

In this week's interview Hasu from Flashbots and Vasiliy from Lido DAO discuss the current state of Ethereum's issuance and staking dynamics post-merge. They explore the potential impact of institutional demand, solo staking, and restaking on the validator set and issuance policy. The conversation also touches on the evolving role of liquid staking derivatives like stETH and how Lido plans to adapt its strategy as more activity moves to Layer 2 rollups. Thanks for tuning in!

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Wormhole is a decentralized interoperability platform powering multi-chain applications and bridges. It provides developers with access to liquidity and users on over 30 leading blockchain networks, enabling use cases in DeFi, data queries, and governance. The platform is trusted by teams like Uniswap and Circle and, to date, the platform has facilitated the transfer of over 35 billion dollars through over 850 million cross-chain messages.

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Pear is an innovative pair-trading exchange built on top of SYMMIO. Users can trade trending narratives with one click, from bluechip narratives such as long BTC, short ETH, right through to WIF vs BONK. SYMMIO’s intent-centric architecture enables deep liquidity, sourced off-chain and brought on-chain, and combined with Pear, have democratized access to complex trading strategies typically reserved for institutional traders.

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Marinade is the leading Solana staking service that spreads your stake across 100+ top validators, distributes MEV rewards, and provides automatic downside protection with new Protected Staking Rewards.

Choose to liquid stake for mSOL for use in DeFi, or delegate your stake through Marinade Native, which gives you full custody of your SOL and no smart contract risk. Max performance for you, max performance for Solana.

https://blckwrks.co/Marinade

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Timestamps:

(0:00) Introduction

(2:32) State of Eth Issuance

(17:54) Wormhole Ad

(18:33) Pear Ad

(18:58) Marinade Ad

(19:37) Avalanche Ad

(20:19) Institutional Lido Demand

(27:02) Changing ETH Issuance Curve

(42:17) ETH Native Liquidity

(47:24) Impact of ETH Restaking

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Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.