The recent ezETH depeg is a good reminder that LRTs can depeg if withdrawals are not enabled. This is the same risk that was present for LSTs before withdrawals were enabled after the merge.

Be sure to evaluate the oracles in use if you're going to use leverage

The recent ezETH depeg is a good reminder that LRTs can depeg if withdrawals are not enabled. This is the same risk that was present for LSTs before withdrawals were enabled after the merge.

Be sure to evaluate the oracles in use if you're going to use leverage

https://twitter.com/0xriptide/status/1782995431808487462

Head of Community @nexusmutual | Safe Governance delegate | Researching risk in DeFi

would argue it isn't even quite "pegged" to eth...

The LRTs aren't earning any actual yield besides the ETH staking yields at this point. They should effectively mirror their underlying collateral.

It's not pegged, per say, but the underlying value is the asset that was deposited to mint the LRT.

EigenLayer ain't earning any yield yet. It's points all the way down.

yes. also... illiquidity has a real cost!

We (re)learn this lesson every bull market, it seems