Robdog 🍾

stETH is experiencing a sustained depeg - let's dig into the mechanisms driving it and how the great stETH looping unwind is playing out stETH is a liquid staking token by Lido, which dominates it's category and is considered an exceptionally safe token. So why is it depegging?…

The winning answer H/t @ec265

Significant media about the ETH validator exit queue being negative for the ETH price They completely miss the point that this is driven by the unwinding of the stETH looping trade which is neutral in ETH/USD terms Everyone loves a fabricated bearish story on a down day

Eth is pumping Time for another military escalation to get us back to peg ($2500)

But it's not how institutions manage their risk They need risk management infrastructure The missing part of the DeFi stack

it now takes 21 days to unstake your stETH on Lido but why in the first place is unstaking designed with waiting time? - shouldn't it all be easier with instant withdrawals? it's on purpose. and here is why:

Tweets like the below from @eth_everstake make it clear how misunderstood DeFi debt markets are. No, validators are not exiting to restake, change operators, or lock in profits. Lol. Lmao, even. As the stETH loopers know well, Pumpfun isn’t the only game in town right now… DeFi…

Last night, a chain of events unfolded that illustrates a critical DeFi risk vector most overlook: Even the most "liquid" yield-bearing assets like $stETH can carry hidden illiquidity risk. Here's what happened, and what we can do better 👇

It is use cases like this which highlights even in very low risk assets like stETH, there are still time to liquidity risks which can meaningfully impact the peg This is why we built @Corkprotocol to serve as a liquidity buffer for periods of extreme outflows

This subtly impacts the pegs of staking/restaking assets, if the queue grows it could have meaningful impacts in a liquidation event Depegs will happen

Crypto volatility is a result of it's recursive nature Regulatory clarity means the recursive loops will now enter institutional scales. Trillions instead of millions Onchain finance is on the verge of explosive expansion

Lfg

Great conversation w Jack on building in crypto

Crypto ecosystem pulling an impressive ~250b$ daily volume Comparable to daily volumes across: -NYSE ~114b$ -All US stock exchanges ~606b$ -US Commodities ~800b$ -US Futures & Options ~15t$ 250b$ volume is no joke, yet we are still so early

Takeaway from Cannes Institutions are coming, everything is being tokenized and the next three years (at least) will be very bullish for adoption driven by insto flows, likely in largest size in the regulated space Stablecoins are the new DeFi meta, serving as a successful…

Proving the #SwagTrilemma at @raave