Pro
ValuationsDeFiLayer-1

Overdone Stake

Kunal GoelSep 22, 2023 ⋅ 6 min read

Key Insights

  • Fact - ETH staking continues to see greater adoption; its staking ratio is now at 22%.
  • Problem - High staking, high staking through liquid staking providers, and high staking through Lido have potentially negative implications for Ethereum’s decentralization and economic security.
  • Solution - Limit staking growth through a protocol upgrade; user activism and incentives can limit Lido’s staking share.
  • Impact - Higher potential for outperformance for Lido’s competitors.

The Facts

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Kunal Goel

77 Reportskunalgoel

Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.

Mentioned Assets
Outline
  • Key Insights
  • The Facts
  • The Problems
  • The Solutions
  • The Impact
Author
Kunal Goel
Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
77 Reportskunalgoel
Mentioned Assets