DeFi

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

Afaik, Etherfi is the only LST protocol that allows withdrawals.

The ezETH isn't the first time an LST has depegged either. pufETH depegged earlier this year, but the lack of available leverage prevented the same scenario we saw this week with ezETH.

Mind the peg and plan accordingly when deploying funds.

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.

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