The Shanghai upgrade is 24 hours away, but no one knows what will happen to all the unlocked ETH.
Which protocols will the ETH flow to? and what metrics should you be tracking?
Here's everything you need to know and why the upgrade is not a sell-the-news event for LSDs ๐
Which protocols will the ETH flow to? and what metrics should you be tracking?
Here's everything you need to know and why the upgrade is not a sell-the-news event for LSDs ๐
To better understand the game theory behind the upgrade, you need to know what's actually taking place.
Essentially, ETH staked withdrawals all the way back from 2020 will go live.
The game theory is: which protocols provide optimal yields & strategies for the freed up ETH?
Essentially, ETH staked withdrawals all the way back from 2020 will go live.
The game theory is: which protocols provide optimal yields & strategies for the freed up ETH?
The LSD narrative was born out of this question with smart founders providing methods to:
1๏ธโฃ Stake ETH without being a validator (or for less setup cost)
2๏ธโฃ Offer more complex yield strategies
3๏ธโฃ Get yield upfront
4๏ธโฃ Aggregate yield
So where will the ETH flow? โ
1๏ธโฃ Stake ETH without being a validator (or for less setup cost)
2๏ธโฃ Offer more complex yield strategies
3๏ธโฃ Get yield upfront
4๏ธโฃ Aggregate yield
So where will the ETH flow? โ
1๏ธโฃ Node operators
@staderlabs will release ETHx, reducing the requirements for an ETH node by a factor of 8, from 32 to 4 ETH (the lowest there is)
Token catalyst: Validators need $SD to do this.
Metric to track: TVL
defillama.com
@staderlabs will release ETHx, reducing the requirements for an ETH node by a factor of 8, from 32 to 4 ETH (the lowest there is)
Token catalyst: Validators need $SD to do this.
Metric to track: TVL
defillama.com
2๏ธโฃ Complex yield strategies
@pendle_fi allows users to speculate on future yield or sell it by tokenizing the yield
Token catalyst: Stake $PENDLE and receive fees + speculation (vePENDLE)
Metric to track: TVL/Volume/Staked %
โ defillama.com
@pendle_fi allows users to speculate on future yield or sell it by tokenizing the yield
Token catalyst: Stake $PENDLE and receive fees + speculation (vePENDLE)
Metric to track: TVL/Volume/Staked %
โ defillama.com
3๏ธโฃ Similarly, we can get yield upfront
@Flashstake is a much smaller cap, but may offer the most degen solution to ETH whales who are bullish on ETH long-term.
Token catalyst: Flash capacitor fees
Metric to track: Strategy TVL (currently 3m) / Fees
โ flashstake.io
@Flashstake is a much smaller cap, but may offer the most degen solution to ETH whales who are bullish on ETH long-term.
Token catalyst: Flash capacitor fees
Metric to track: Strategy TVL (currently 3m) / Fees
โ flashstake.io
$FLASH and $PENDLE are both Time-Based Derivatives (TBDs) where you're essentially speculating on future yield.
Both offer different products but trying to capitalize on the same assets/provide up front yield to those willing to lock assets.
Here's an amazing thread โ
Both offer different products but trying to capitalize on the same assets/provide up front yield to those willing to lock assets.
Here's an amazing thread โ
4๏ธโฃ Don't know what to do? Bet on Aggregatooors
These are those looking to aggregate the best yield across LSDs and feed it back to you.
Projects I will be keeping an eye on: $ACID, $LSD
These are those looking to aggregate the best yield across LSDs and feed it back to you.
Projects I will be keeping an eye on: $ACID, $LSD
Projects mentioned are those that have the best R/R according to myself, often based on MC/TVL.
Don't neglect diversification by ignoring the big players in the space like $LDO, $RPL, $FRX, they dominate market share.
Or more degen picks like $BNC/$SGT
Don't neglect diversification by ignoring the big players in the space like $LDO, $RPL, $FRX, they dominate market share.
Or more degen picks like $BNC/$SGT
Ultimately, I'm looking forward to some volatility again and to see if what I've been spouting this entire time will come true.
Follow me @LouisCooper_ for more in-depth analysis once we see more movement from said metrics!
Cheers ๐
Follow me @LouisCooper_ for more in-depth analysis once we see more movement from said metrics!
Cheers ๐
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