Unchained

In the Recent Crypto Market Meltdown, What Role Did Lido's stETH Play? - Ep. 370

4 snips
Jul 5, 2022
Hasu, strategy lead at Flashbots and advisor to Lido, teams up with Tarun Chitra, founder of Gauntlet, to dissect the world of staked ETH (stETH). They discuss Lido's impact on liquid staking, unraveling its market dominance. The duo explains why stETH isn't mispriced and the risks it faces, especially during liquidity crises. They also delve into the implications of the Ethereum Merge for stETH liquidity and the complex governance needs as Lido grapples with market fluctuations. Insightful and engaging, this conversation navigates the intricate landscape of decentralized finance.
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INSIGHT

stETH Benefits

  • Staked ETH (stETH) solves several issues with native Ethereum staking: complexity, cost, and illiquidity.
  • It represents staked ETH and allows participation in DeFi.
INSIGHT

Decentralized Staking

  • Ethereum initially aimed for a decentralized, one-person-one-node staking model.
  • Lido's stETH offers a decentralized alternative to centralized exchange staking.
INSIGHT

stETH Pricing Dynamics

  • stETH's price has fluctuated due to market forces like risk, yield, and liquidity.
  • Increased liquidity concerns during market downturns drive stETH's price below 1 ETH.
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