DeFi

Anyone worried about liquid restaking having unforeseen risks like Terra/Luna?

Investing in AI & Web3 via Generative Ventures
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Ex Chief Economist & CMO @Consensys

Yep, worried everyone's greed is gonna lead to the same mistake

But how? 

As in any algo coin, there was a death spiral: depegged UST was redeemed for Luna -> Luna was sold -> Luna price dropped -> more Luna was minted for each UST.

Is there any similar risk in restaking? 

I certainly worry about it thou. There ain't no free yield.

Content at /zerion Safary 🦁 member.  KB ∞. Memecoin  ̶e̶n̶j̶o̶y̶o̶o̶r̶ masochist.

I think LDS are different but certainly have some risks. That said, stables poise the biggest risk yet sound projects have demonstrated their resilience and found PMF. 

Still watching tether

A bunch of the protocols rug-pulling the LRT liquidity and selling it 

Agree with you there's not the mathematical connection, just the counterparty and hacking risk of layering on smart contacts