This is not the same as the UST crash because the underlying asset, ETH, is not directly affected by the market price of stETH, CoinShares said. The benefit of stETH is that it allows users to earn yield from staking ether, using a technique known as liquid staking. The ETH that’s been staked continues to secure the network as planned, while users have access to a liquid asset that can be invested. Lido’s product can be classified as “premature” because the inability to un-stake makes the stETH feature incomplete, according to the report.
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