Lido argues that staking allocation, fees and liquidity management determine the rewards advertised by Ethereum investment products. According to the institution, a product holding 20 unstaked ETH out of a 100 ETH portfolio would generate rewards on only 80 ETH, representing an illustrative return of 2.4 ETH at 3% before fees and adjustments. This liquidity can facilitate redemptions, while native staking withdrawals remain subject to network processes and queues. Liquid staking allows investors to sell a transferable claim on staked ETH but introduces price and execution risks, particularly when demand for liquidity rises sharply.
Source: Read the original article
Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
