The collapse in UST hit stETH, with the token trading at a 4.5% discount to ETH, Goldman said. That’s because stETH holders were able to convert their tokens into bonded ether (bETH) and earn rewards on Terra’s Anchor Protocol. As a result stETH was vulnerable to Terra blockchain halts, which impact withdrawals, according to the report.
Goldman Sachs Says DeFi’s Interconnections Can Increase Systemic Risk
