@Kethfinex I would really appreciate if you explain me this.

Question

@Kethfinex I would really appreciate if you explain me this.

1. In a period of ~5 months, I have observed a reduction in reward from 5.5% to 4.7%. Why there is this much deduction?
2. If I see the centralized exchanges (for ex: coinbase), they provide a constant reward of 5%. How they are able to do it?
3. Will the internal reward of Eth staking that lido will receive would reduce to such a bare minimum extent?

After staking with lido in the duration of 5 months, I haven't earned even the initial sum that I would get if I exchange StEth in Paraswap.

#cryptocurrency #english #lido

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13.01.2022

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Oreo Автор вопроса

cryptodenier (will NOT dm first)
1. As more ETH is staked within Lido, there is mor...

Thanks for the clarification. I do appreciate the effort you guys do.

0

13.01.2022

cryptodenier (will NOT dm first) · Accepted Answer

1. As more ETH is staked within Lido, there is more stETH rewards being distributed to more parties, in essence diluting rewards for existent stakers. stETH rewards are also socialized, which you can read more information about in this article: https://blog.lido.fi/steth-the-mechanics-of-steth/. 2. Different staking platforms have different reward mechanisms, fees, centralisation. 3. Post-merge, it’s expected that the rate will increase with the addition of transaction fees + MEV being collected, which will be rewarded to stakers. Lido shared an architectural design regarding this here: https://research.lido.fi/t/rewards-distribution-after-the-merge-architecture-decision-record/1535. Paraswap/Curve’s stETH pool is imbalanced (more stETH than ETH) which is the reason why you would receive a lower rate. You will be able to redeem your stETH for an equivalent amount of ETH through Lido post-merge, without needing to rely on an AMM.

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@Kethfinex I would really appreciate if you explain me this.

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