The sale of Staked ETH Lido continues - the whale sells 56,000 stETH
The discount on liquid stack tokens from Lido called Staked ETH (stETH) increased even more after the sale of a large batch of stETH by a large holder.
In-network data from Etherscan shows the addresses of wallets marked as Three Arrows Capital (3AC) in a tweet from PeckShield, which sell more than 56,000 stETH per ether (ETH). One transaction included the exchange of 17,780 stETH for 16,625 ETH, which were converted into DAI (DAI) stablecoins for $20 million.
Another batch of sales included the exchange of 38,900 stETH for 36,718.64 ETH. This transaction originated from another wallet designated as belonging to 3AC. At the time of publication, the wallet in question still contains more than 19,600 stETH.
Today's sale of stETH was a continuation of a series of expensive swaps of the liquid staking token, as a result of which Ethereum placed in the stack became less tied to the price of ETH. According to The Block, one of the wallets sold about 50,000 tokens.
Lido (LDO), a liquid stacking platform, provides users with stETH in exchange for ETH hosted on this platform. Thus, each stETH is provided with 1:1 ether hosted on the Ethereum Beacon Chain.
This, however, does not mean that stETH will always trade at the same price as ETH. Secondary market forces may create a slight disparity in the price of ether placed in the stack in relation to "free" ETH.
The discrepancy may be due to the uncertainty associated with the ownership of the derivative token, rather than the underlying asset. ETH placed in the Beacon Chain cannot be withdrawn until Ethereum switches to proof of ownership and the two parallel chains are merged.
Today's sell-off has also led to the fact that the stETH liquidity pool on the Curve has become even more unbalanced. Curve (CRV) is a large DeFi liquidity pool that serves as the main source of liquidity for swaps with stETH.
Data from the stETH Curve pool now shows a ratio of 20% ETH to 80% stETH. This means that the liquidity of Staked ETH is decreasing, and it will become increasingly difficult to exchange it for ETH.
A reduction in liquidity and an increase in discount can create problems for people with loans secured by stETH in DeFi credit pools such as Aave. Further price declines may affect these positions.
https://coin-signal.com/ethereum/the-sale-of-staked-eth-lido-continues-the-whale-sells-56000-steth/
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