Lido drop didn't sit right with me, so I looked into it. The likely culprit: Ethereum's EIP-8361 proposal. It aims to slash staking rewards as ETH staking rises at 50% participation, issuance could hit zero, and even now, yields might drop from ~2.6% to 1.2%.
That would make stETH less appealing, hurt LDO TVL growth, and cut protocol revenue. The market's pricing in the risk, but the proposal is still an early draft with a long road ahead. No need to overreact.
That would make stETH less appealing, hurt LDO TVL growth, and cut protocol revenue. The market's pricing in the risk, but the proposal is still an early draft with a long road ahead. No need to overreact.