Making Sense of the stETH Discount

A market-wide liquidity crunch caused Lido’s stETH to trade at a discount to spot ETH. While the stETH : ETH Curve pool helped Lido create the deepest liquidity pool in all of DeFi, it likely also contributed to the current re-rating and volatility. This Analyst Note will help you understand what drives stETH’s price and why Lido benefited from Curve’s stability.

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