{"id":62920,"date":"2022-06-15T11:13:09","date_gmt":"2022-06-15T08:13:09","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62920"},"modified":"2025-09-05T20:55:34","modified_gmt":"2025-09-05T17:55:34","slug":"lido-says-it-will-continue-operating-amid-continued-steth-discount","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/lido-says-it-will-continue-operating-amid-continued-steth-discount\/","title":{"rendered":"Lido says it will continue operating amid continued stETH discount"},"content":{"rendered":"<p>The Lido Finance liquid staking service is operating normally, despite the stETH token&#8217;s decline relative to Ethereum and a sell-off of the asset by large holders. The project developers said so.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">These large swings are, in most cases, linked with the specific liquidity needs of certain market actors \u2014 they are not tied to the fundamentals of stETH or the value of the underlying assets.<\/p>\n<p>All stETH issuances are verifiably backed 1:1 by ETH deposits on the Beacon Chain.<\/p>\n<p>\u2014 Lido (@LidoFinance) <a href=\"https:\/\/twitter.com\/LidoFinance\/status\/1536756936049401856?ref_src=twsrc%5Etfw\">June 14, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThese large swings are, in most cases, linked to the specific liquidity needs of certain market participants \u2014 they are not tied to the fundamentals of stETH or the value of the underlying assets,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>The team noted that all stETH issuances are verifiably backed 1:1 by ETH deposits in the <a href=\"https:\/\/u1f987.com\/en\/news\/proof-of-stake-how-it-works-and-why-it-is-so-popular\">PoS<\/a>-Beacon Chain network.<\/p>\n<p>According to the developers, after the so-called <a href=\"https:\/\/u1f987.com\/en\/news\/the-merge-what-to-expect-from-ethereums-largest-update\">&#8216;Merge&#8217; (The Merge)<\/a>, stETH will be exchangeable for deposited ETH and accrued staking rewards, regardless of the stETH price.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Once the Merge is complete and withdrawals are enabled (in the \u2018Capella\u2019 hardfork, estimated to be ~6 months post Merge), stETH will be redeemable for deposited ETH and accrued staking rewards, independent of secondary market stETH:ETH rate.<\/p>\n<p>\u2014 Lido (@LidoFinance) <a href=\"https:\/\/twitter.com\/LidoFinance\/status\/1536756940419784704?ref_src=twsrc%5Etfw\">June 14, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Curve, as of writing, the discount on stETH tokens exceeds 5%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/nUJccM_qmFznKAtsc8cpb8EF0nPLEVWc7sB_z3zbJsiD5MWTqeKZLWCSMxdgLQLE4BeYET2xHb5o_YWagT4TNwe3RhyaGGs2pk1W8x5Xb-MHSMo2TlLWUO4q2gNUY8yZaL-I4rDgpBuzuDjlcw\" alt=\"Lido says it will continue operating amid stETH discount\"\/><figcaption>Data: Curve.<\/figcaption><\/figure>\n<p>PeckShield previously drew attention to large swaps, made by wallets allegedly linked to Three Arrows Capital (3AC). Some experts noted that the hedge fund&#8217;s operations indicated an intent to repay its debts and loans.<\/p>\n<p>Against this backdrop, co-founder Su Zhu stated that 3AC &#8220;is fully committed to solving this problem&#8221;.<\/p>\n<p>Against this backdrop, the community watches the actions of the crypto-lending platform Celsius, which previously suspended withdrawals, exchanges and transfers between accounts. As of this writing it holds 409 260 stETH worth $436.5 million, according to <a href=\"https:\/\/apeboard.finance\/dashboard\/0x8aceab8167c80cb8b3de7fa6228b889bb1130ee8\">Ape Board<\/a>.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/09_5E7OA9Ej1gho7IECDtzQGBrbfMxo1bXwENeTRLbLUYy5IBYyR_q3aR_f8-oEF5XhPrGXBDHoDMAktzLJ0hK_ONx2Km7QzIEi9W7Y4MAeYshaffSg-QitzwNNfXs_yoNU8JfTHKyMK-qWnHg\" alt=\"Lido says it will continue operating amid stETH discount\"\/><figcaption>Data: Ape Board.<\/figcaption><\/figure>\n<p>Analysts from Huobi, Johnny Lowi and Andy Hu, noted that Celsius previously incurred losses of almost $71 million due to listing stETH on the staking platform StakeHound after the private-key incident. In June 2021, the latter accused Fireblocks of losing access.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis was reported in the news a week ago, and upon learning that the investments were in danger, Celsius users began to buy back their positions. The withdrawal rate was high, about 50 000 ETH per week, which forced Celsius to sell other assets, such as stETH (in Lido staking), for ETH on secondary markets like Curve to obtain more liquidity,\u201d the experts said.<\/p>\n<\/blockquote>\n<p>They say that only 27% of Celsius&#8217;s ETH holdings are liquid. As a result, they say, the platform \u201chad no choice but to sell stETH in Lido&#8217;s staking.\u201d<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/ptiPBToWfr271cKm1v3R3e8_B7fPuqIqkYdUamm_NuEvxlFr66u9h5qtSyNMmHe_bxYTbK2f918503zhbr6VL4oW7llynJyEXpBfjJ6IiLDbrVonW3CuKB4wuV50FtL8ozn-2sw9hJwskQNHJg\" alt=\"Lido says it will continue operating amid stETH discount\"\/><figcaption>Data: research Huobi.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn the short term, stETH will face enormous selling pressure. Turbulence is expected in the near term,\u201d the analysts conceded.<\/p>\n<\/blockquote>\n<p>The discount on stETH first formed in May amid the collapse of the algorithmic stablecoin TerraUSD (UST) and the LUNA token. At that time, media reported that Celsius managed to rescue 225 000 ETH from the Anchor protocol.<\/p>\n<p>Earlier in May, Goldman Sachs analysts warned that the Terra ecosystem collapse had caused contagion to the stETH token, heightening systemic risks.<\/p>\n<p>Subscribe to ForkLog&#8217;s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Lido Finance liquid staking service is operating normally, despite the stETH token&#8217;s decline relative to Ethereum and a sell-off by large holders, according to the project developers.<\/p>\n","protected":false},"author":1,"featured_media":62921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1348,46,1387],"class_list":["post-62920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-celsius-network","tag-ethereum","tag-lido"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=62920"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62920\/revisions"}],"predecessor-version":[{"id":62922,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62920\/revisions\/62922"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/62921"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=62920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=62920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=62920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}