🧵 1. Liquid staking tokens (LSTs) pose a threat to Ethereum, potentially replacing its native cryptocurrency, Ether (ETH). LST market worth $17B and growing. #crypto
🧵 1. Liquid staking tokens (LSTs) pose a threat to Ethereum, potentially replacing its native cryptocurrency, Ether (ETH). LST market worth $17B and growing. #crypto
🧵 2. Advantages of LSTs over ETH are becoming apparent, offering liquidity and flexibility to LPs. LSTs unlock value of staked assets and can be traded and used as collateral in DeFi protocols.
🧵 3. LPs can earn both staking yield and provide liquidity using LSTs in AMMs. Lower cost and broader access make LSTs appealing to new audiences and smaller investors.
🧵 4. LPs who choose ETH over LSTs sacrifice roughly 4% APR, compromising potential yield and flexibility. The argument for LSTs replacing ETH in DeFi is strong.
🧵 5. LSTs could disrupt ETH's dominance in DeFi; it's time to consider the potential impact of liquid staking tokens. Ethereum faces a new era of LST domination.
🧵 Read more at: https://cointelegraph.com/news/ethereum-crushed-liquid-staking-tokens