📣 New State of the Network - The Different Flavors of ETH: From Wrapped to Liquid Staked Tokens In @coinmetrics ' latest State of the Network, @TanayVed breaks down the landscape of tokenized versions of ETH and explains their emergence, touching on liquid staking tokens, analyzing their pricing mechanics, reward structures, and utility, while assessing liquidity conditions and the risks that shape their stability. Key takeaways: - Tokenized versions of ETH such as WETH, LSTs, and LRTs enable ERC-20 compatibility, greater interoperability, and improved capital efficiency on-chain. - With roughly 24% of ETH staked via Lido, stETH and its wrapper wstETH have become widely used forms of DeFi collateral and are often employed in looping strategies to enhance returns. - The pricing and reward mechanisms for these tokens vary, with some following a rebasing design while wrapped versions accrue value with a rising exchange rate to ETH. - As these assets scale, monitoring validator...
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