How to mitigate liquid staking derivatives threatening Ethereum's decentralization

Layer 1s • November 21, 2023, 6:02PM EST
Published 1 minute earlier on
The Block

Quick Take

  • Superphiz explains how liquid staking derivatives could impact Ethereum’s credible neutrality.

Episode 99 of Season 5 of The Scoop was recorded with The Block's Frank Chaparro and Ethereum decentralized staking advocate Superphiz.

Listen below, and subscribe to The Scoop on Youtube, Apple, Spotify, Google Podcasts, Stitcher, or wherever you listen to podcasts. Please send feedback and revision requests to [email protected].

Superphiz is a long-time Ethereum community member and a became a vocal advocate for staking decentralization following the Ethereum 'Merge' to a proof-of-stake consensus mechanism last year.

In this episode of The Scoop, Superphiz unpacks how Ethereum's merge to proof-of-stake has caused liquid staking derivatives to pose a potential threat to Ethereum's credible neutrality, as well as the best pathways to mitigate the potential for staking centralization.

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OUTLINE:
00:00 - Introduction
2:55 - Success of ‘The Merge’
5:28 - Ethereum Centralization Concerns
13:34 - Lido’s LSD Dominance
20:54 - Scaling Ethereum
25:33 - New Use Cases
27:37 - Closing Thoughts

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© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Davis Quinton is the Director of Podcasts at The Block and runs our flagship podcast called The Scoop, hosted by Frank Chaparro. Since joining The Block as an 'intern' in early 2022, he has worked closely with leaders across departments to translate The Block's written content into engaging multimedia formats. He holds a degree in Social Research & Public Policy from New York University in Abu Dhabi and is based in Sydney, Australia.
Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

Editor

To contact the editor of this story:
Nathan Crooks at
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