Enter crypto staking yields, or more specifically, “post-Shapella” staking yields. Since the Shapella upgrade of the Ethereum network, users can stake and unstake their ether (ETH) at will, significantly de-risking staked ETH from a liquidity standpoint. This has been reflected in the staked ether, or stETH, discount to ETH, barely dipping past 30 bps since Ethereum’s last major upgrade. Before the Shapella upgrade, stETH was a poor collateral asset due to its illiquidity and discount volatility. Now that stETH has been derisked, we have seen it overtake ETH as the primary collateral asset throughout DeFi.
Related posts
-
This Historical Ethereum Top Signal Is Yet To Appear This Cycle
On-chain data suggests this signal that has historically occurred around Ethereum peaks has yet to appear... -
Bitwise CIO Bullish On Spot Ethereum ETFs: Envisions $15 Billion Inflows
In a significant development for the cryptocurrency market, asset managers are eagerly preparing for the launch... -
Bitcoin defi tool developer ALEX Lab says Lazarus Group likely behind $4m hack
The developer of Bitcoin-focused defi platform ALEX Lab says North Korean hackers are likely behind the...