The 1st order reason for diminishing returns on staked security is that at large enough % of network staked you severely reduce liquidity and alternative lending yields on the staked asset to the point of making the opportunity cost of staking (lost yield elsewhere) de minimis

The 1st order reason for diminishing returns on staked security is that at large enough % of network staked you severely reduce liquidity and alternative lending yields on the staked asset to the point of making the opportunity cost of staking (lost yield elsewhere) de minimis https://t.co/yGdsDrx7E7

ヽ(⌐■_■)ノ♪♬ @ @gauntlet/🤖Ventures/tldr/Aera \\ ¯\_(ツ)_/¯ Struggling with the nature of randomness \\ main: @gaa \\ /red-bull /defi-research maxi

How do you prevent diminishing returns after such point