Unchained Post-Merge, If Lido Becomes Dominant, What Does That Mean for Ethereum? - Ep. 372
Jul 12, 2022
Ryan Berckmans, an Ethereum investor and community member, joins Bitcoin investor Alex Bergeron to dissect Lido's impressive hold on liquid staking derivatives. They explore the implications of Lido's potential monopoly on Ethereum's decentralization, uncovering the mechanics of stETH and its uses. The conversation touches on the challenges posed by miner extractable value, dual governance proposals for Lido, and the ethical dilemmas of a centralized staking ecosystem. Can other competitors challenge Lido’s dominance? Tune in to find out!
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MEV Advantage
- Post-merge, MEV becomes crucial, and Lido’s size gives it an outsized MEV advantage.
- This allows Lido to offer higher staking yields, attracting more users.
Lido’s Dominance Cycle
- Lido’s lead, partnerships, and MEV research attract more users, creating a cycle.
- Competitors like Rocketpool face headwinds like fewer DeFi integrations and higher fees.
Cross-Chain MEV
- Lido’s dominance is further solidified by its expansion to other chains, creating cross-chain MEV opportunities.
- This expansion allows Lido to compound its lead and invest more in development.