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stETH’s DeFi foray

Some analysts say the collateral boosted Lido’s growth, carrying on the recent decision by the anchor protocol to adopt BETH, a version of the stETH token suitable for use on the Terra blockchain.
Denis Vinokourov, Head of Research at Synergia Capital, said: In contrast, “BETH allows you to rent and rent ETH on the Terra network, which is literally the dynamics that opened the lock.”

According to Messari research analyst Jack Anderson, bETH provided STETH holders with a cross-chain opportunity to earn fixed ETH returns.
“Previously, I was able to get STETH and deposit it in the curve pool to earn additional revenue (in addition to the ETH 2 participation reward), but now I can use BETH to convert STETH to BETH. You can rent Terra USD or UST at. ”Other Sun. Said. UST is a stablecoin based on the Terra blockchain algorithm. Anderson added that Lido’s efforts to disperse and maintain transparency give people a great deal of confidence.
According to Bankless, Curve Finance’s stETH-ETH group, launched earlier this year, is the most prominent stETH integration to date. The pool allows STETH token holders to trade between equity derivatives and “regular” ETH. Anyone can provide liquidity to the STETH Group in exchange for bets paid on LDOs and transaction fees. At the time of the press, the group has $ 4.8 billion in deposits and over 700,000 STETH. This is more than 50% of the total cyclic supply of the differential symbol.
Therefore, stETH holders can easily stop betting by selling tokens acquired by ether through Curve Finance. However, in that case, the seller STETH loses the betting reward to the buyer.
Lido and decentralized bets generally have an advantage over central exchanges, but at least in theory they are not without risk. As Terra Money pointed out last year, liquid bets are similar to asset-backed bonds in the sense that they both create a new layer of abstraction that makes people less likely to worry about the health of the underlying asset. It looks like there is a transition from physical delivery to paper delivery in the future market. ”

In addition, validators have the advantage of lowering the price of tokens, as they can short the shares they acquire if they are found to be malicious. “It’s theoretically possible,” Lido said, adding that his validator set contains only reliable validators.