Lido Flags Liquidity Buffers as Drag on Ethereum ETP Staking Yields
- —A 20 ETH buffer on 100 ETH leaves 80 ETH staked, yielding 2.4 ETH a year at 3%
- —Lido promotes liquid staking as an alternative, citing WisdomTree's stETH-backed product
- —Validator exits depend on the network queue, while selling stETH requires buyers at an acceptable price
- —Lido acknowledges a commercial interest in the comparison
Why it matters: ETH ETP investors should compare staked allocation, fees and liquidity rather than headline staking rates.
Source: Cryptonews.net