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Lex Sokolin
@lex
Anyone worried about liquid restaking having unforeseen risks like Terra/Luna?
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Anthony Bowman
@anthonyb
Unforeseen risks, yes most likely. Like Terra/Luna, no not all.
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Lex Sokolin
@lex
We're creating an algorithmic connection between the core currency of the network, ETH, and the validation of the projects on top via EigenLayer. I agree that it's not the same math, but similar things are being tied together.
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Anthony Bowman
@anthonyb
Terra created a stablecoin with backed by an endogenous asset and then promoted a highly unsustainable yield. I'm not sure how they are really in the same ballpark. What do you think is the actual risk here?
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Lex Sokolin
@lex
My primary concern is smart contract risk of rehypothecation. My secondary concern -- Eigenglayer is creating multiple new applications backed by the endogenous asset of Ethereum. If those applications fail, what will be the effect on the stETH used to validate them? I can't tell clearly.
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Anthony Bowman
@anthonyb
Users are opting into rehypothecation though. They may blow up but I don’t see how it is systemic. Again, users will opt in to that. Even if all that ETH gets slashed to zero it shouldn’t impact the Ethereum network itself.
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Anthony Bowman
@anthonyb
Like I said, there are risks but it’s not the worst case scenario is all of Ethereum melting down over night. I just think the comparison to Terra/Luna doesn’t work
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Lex Sokolin
@lex
That's a fair point, not all ETH is staked, and not all staked ETH is in an LRT blackbox.
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