Reckless – Chapter 20: Staking Derivatives

Tokenised Staking DerivativesThe entities performing the outsourced staking as a service business, could also issue tokens to their clients, representing shares in the staking pool. Another issue is that if everyone is staking, then perhaps there is no real staking yield at all. Curve operates the Ethereum vs stETH market with two pools of liquidity, an stETH pool and an Ethereum pool. Therefore, some kind of liquidity crisis causing a race to exit staking is possible, with the staking tokens trading at a discount. For example, a staker could purchase a swap contract entitling them to receive fixed payments and pay variable payments, based on the actual Ethereum staking yield.