ethrd

Tell me where my thinking is wrong: 

Lowering issuance curve + restaking could kill LSTs

If issuance is low enough LST yield (solely from issuance) won't outweigh governance + smart contract + centralization risks. Restaking offers yield LSTs won't touch. Solo staking is still attractive because MEV + restaking yield

/ethereum foundation | opinions are my own but more than likely they come from Vitalik's blog paragraph.xyz/@chaskin

Generally I would try to avoid the "high issuance => more yield, low issuance => less yield" mental model, but in a high issuance world with LSTs controlling a lot of stake, it's not so much that the yield they offer outweigh the other risks, but really more that not holding them gives you a significant discount

Robust Incentives Group @ Ethereum Foundation

https://rig.ethereum.org

I understand the concern, nobody likes to end the party, but I think we should have an honest conversation without hyperboles on where we think we're going with the current state of things. There is no free yield in any world, so it really is all about maximising relative differences

LRTs maximise relative difference vs vanilla LSTs, so in a competitive environment they should win out if there doesn't exist a more yield-inelastic participant (big if)

See also some of the discussion in there: https://warpcast.com/~/conversations/0x085346ae24af07f769b5b9e6a965823fde09a8ed

Thank you, really helpful. I'm still learning and wrapping my head around this issue