Ethereum

Regarding the Lido stake holdings, which of this do you think is actually the biggest lift?
- Convince Lido to self limit. 
- Vampire by offering real incentives to exchange stETH. 
- Implement an enshrined solution. 
- Accept the market decision, and compel Lido to truly decentralize via governance or social slashing.

Great topic. IMHO:
1 is a pipe dream
2 is the next best thing after 3.
3 (protocol-level MEV smoothing) would reduce some but not enough of the LST appeal (simplicity over solo staking).
4 hell no, I care about credible neutrality

And I would add:
5 Forster innovative competition in the LST space to eat Lido’s lunch

PhD in aviation ∩ climate science | Aviator, diver, ETH maxi, nexialist | Host of /diving /ethfinance /eth-staker /geopolitics /science /singapore /thomas

Technically nothing prevents Lido from doing that already today (assuming the loan is covered by the yield).

But with the typical collateral ratio at 200%, it means you’re locking up more ETH in collateral than you are borrowing to stake, so it’d be more economical to just stake.

Borrowing works if you go to fiat

Def like 5. I’ve wondered about reshuffling. Say a hot new LST comes up and half of current stETH want to switch. Wouldn’t the adversarial response be to borrow the required ETH for repayment, not unstake, keep market share, and pay the loan via the yield. Probably a little lopsided, but what’s the value of size?