Unbundling of “stake ether” in Lido Finance is different from the loss of the US dollar and the Terra USD pair. These are the results of CoinShares analysts.

Is the splitting of Lido staked ETH another stablecoin crash? our analyst @marcarjoon Discover the risks and rewards of the liquid staking service and why no silver bullet solution has yet been offered. Click here to read the full article: https://t.co/gIMR6opo9S

— CoinShares 👩‍🚀 (@CoinSharesCo) 17 June 2022

Experts noted that stETH does not need to maintain a 1:1 ratio to ETH to work properly. The coins locked in the staking process continue to protect the network, while the derivatives version of Ethereum can be transferred to various DeFi projects for additional income.

Experts predict that the discount will continue until the possibility of withdrawal of ETH from the deposit contract appears. They explained the persistence of the observed inconsistency by the “lack of arbitrage opportunities” to eliminate it.

CoinShares has highlighted community concerns regarding Lido Finance’s growing dominance among Staking as a Service (SaaS) platforms. The share of the project reached 31.9% of the total 12.92 million ETH ($14.69 billion).

Experts pointed out the liquidity issues of some market makers, as the possibility of withdrawing ETH on the Beacon Chain will appear only some time after the merger (The Merge). This led to stETH sales.

Citing on-chain data, experts stressed that industry participants such as Celsius Network have sufficient assets to meet obligations. However, they added, “that’s not a guarantee, given the opacity of centralized institutions.”

For long-term investors whose profits and losses are in ETH, the resulting discount creates a buying opportunity, while speculators focused on USD financial results may need to close their positions. In contrast, arbitrageurs have the option to open a long position in stETH and a short position in ETH.

CoinShares believes that the transition of the Ropsten testnet to PoS, which took place on June 8, gives confidence to those who expect the discrepancy between the two assets to disappear in the future.

Experts did not rule out that the loss of the ETH to stETH parity will strengthen the call for regulation of crypto lending platforms.

Recall that the innovative center of Bank for International Settlements will develop a platform for assessing the risks associated with stablecoins and crypto loan projects for financial stability.

ForkLog recently reported a crash TVL The largest liquidity pool for stETH seven times in a month and a half Earlier, Lido Finance said that the service is operating as usual, despite the sale of the asset by large holders and the reduction in stETH.

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