đ stETH and Impact on #Ethereum !
đ Staking continues to change the $ETH supply landscape and emission dynamics. Lido has played an important role in this trend.
đ A notable growth in the usage of stETH compared to ETH is taking place. stETH has become the preferred asset for lending, offering more attractive yields than providing liquidity through stETH-ETH pairs on decentralized exchanges.
đ Liquid Staking is becoming increasingly important, with 32% of the $ETH supply staked through the largest project, Lido. This means that 7% of the $ETH supply is being replaced by stETH, creating a notable shift.
đ This has accelerated the growth of stETH and wstETH supply, while also creating a significant increase in demand for them in#Defiapplications.
đŠ Additionally, stETH has replaced ETH in Aave, which could bring higher profits to stETH positions.
đ This development also presents challenges, including the risk of stETH losing its Neo to the underlying asset and the handling of bad debt on AAVE.
