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kydo
@kydo
Two questions that's been on my mind, would love people's thoughts here. 1. Does the moneiness of a derivative of ETH (eg LST) translates into the moneiness of ETH? 2. Does the moneiness of ETH translates into the moneiness of a derivative of ETH (eg LST)?
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Barnabé Monnot
@barnabe
Please expand ser. What is one example of the moneiness (moneyness?) of a derivative influencing the moneyness of ETH? What do you define as moneyness?
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Ronan
@totally
would argue that an LST with sufficient liquidity and integrations (stETH) eliminates the opportunity cost of staking (locking) your ETH, thus increasing ETHs underlying utility (especially as a collateral money), which proliferates the use of ETH as money -- moneyness 🆙
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Barnabé Monnot
@barnabe
If we wanted to eliminate the opportunity cost of staking and have more ETH around to use as collateral, why wouldn't we prefer to target some amount at stake?
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Ronan
@totally
i guess i agree that some target amount at stake is ok, just dont really know how you come up with that desired % ? Dont think there is anything inherently wrong with targeting, but deciding too quickly or targeting too low of a % seemingly will have negative externalities
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Barnabé Monnot
@barnabe
To be clear the decision right now (and even then, not right now, in the months to come) is not about targeting, but about a more moderate issuance curve https://ethereum-magicians.org/t/electra-issuance-curve-adjustment-proposal/18825?u=barnabe
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Barnabé Monnot
@barnabe
If we then later did move ahead with targeting, agreed that much more thought would have to be expended to decide how to do it sustainably
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Ronan
@totally
yea i think my main concerns are: -vertically integrated centralized providers could push the long-tail of stakers and protocols out: prob of CB having >50% of stake increases imo -frequent adjustment of the issuance curve arguably degrades ETHs moneyness -issuance doesnt necessarily have to be dilutive for holders
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