LST
Leuthold Select Industries ETF
stock NYSE ETF

The whole point of LSTs is to leverage your staked position to make higher returns.
Through say Folks Finance, Pact.fi, or Tinyman that's generally via using your LST as a pool pairing inorder to farm governance token rewards -- or potentially via borrowing against said LST for more return elsewhere.
I can make 5.02% staking with Tinyman, and an additional 9.13% pooling my talgo in a USDC pairing.
Or restake my talgo for staked talgo and earn an additional 1% in tiny, flip that tiny into the tiny/usdc pool and earn another 47% on the earned tiny rewards.

There were not enough. It got down to 1.2B and was dropping. That's why they had to introduce staking in the first place.
LST's - the whole point to LST is that they are there to capture staking rewards, which is what I'm saying is at risk.

How much of a depeg have you seen on Marinade? That is a big LST with hundreds of millions in TVL. Hard to imagine it deviated anything above 0.1 of a percent. I guess you can arb that in size but you'd need a lot of size to do it.

It's not 7%+ on LST staking, it's closer to 6% now

Yes, PSOL is worth more than SOL. It's worth 1.045 SOL. Why were you thinking PSOL is worth less than SOL?
When an LST is created it's worth the same as SOL, 1 to 1. As the amount of SOL in the validator increases over time from native staking, the value of each of the LST coins increases, because now that LST is representing the original 1 SOL, plus all staking rewards since inception. So it's representing more than 1 SOL.
Let's assume a static 6.5% staking rate. After one year, the LST is worth 1.065 SOL. After 2 years it's worth 1.134 SOL.

LST protocol has risk

Genuinely curious about this. SOL lending yields: 3-5% LST staking: \~7% + you can still use it in DeFi. The math seems obvious, but tons of users stick with plain SOL.
Don't trust LSTs? Too lazy to switch?
What's the actual reason?

The whole point of LSTs is to leverage your staked position to make higher returns.
Through say Folks Finance, Pact.fi, or Tinyman that's generally via using your LST as a pool pairing inorder to farm governance token rewards -- or potentially via borrowing against said LST for more return elsewhere.
I can make 5.02% staking with Tinyman, and an additional 9.13% pooling my talgo in a USDC pairing.
Or restake my talgo for staked talgo and earn an additional 1% in tiny, flip that tiny into the tiny/usdc pool and earn another 47% on the earned tiny rewards.

There were not enough. It got down to 1.2B and was dropping. That's why they had to introduce staking in the first place.
LST's - the whole point to LST is that they are there to capture staking rewards, which is what I'm saying is at risk.

How much of a depeg have you seen on Marinade? That is a big LST with hundreds of millions in TVL. Hard to imagine it deviated anything above 0.1 of a percent. I guess you can arb that in size but you'd need a lot of size to do it.

It's not 7%+ on LST staking, it's closer to 6% now

Yes, PSOL is worth more than SOL. It's worth 1.045 SOL. Why were you thinking PSOL is worth less than SOL?
When an LST is created it's worth the same as SOL, 1 to 1. As the amount of SOL in the validator increases over time from native staking, the value of each of the LST coins increases, because now that LST is representing the original 1 SOL, plus all staking rewards since inception. So it's representing more than 1 SOL.
Let's assume a static 6.5% staking rate. After one year, the LST is worth 1.065 SOL. After 2 years it's worth 1.134 SOL.

LST protocol has risk

Genuinely curious about this. SOL lending yields: 3-5% LST staking: \~7% + you can still use it in DeFi. The math seems obvious, but tons of users stick with plain SOL.
Don't trust LSTs? Too lazy to switch?
What's the actual reason?

>But as you say its not a 1.045
What?
>what's stopping it from going to smth like .95
Because 1 PSOL is currently backed by 1.0451 native-staked SOL. If it went to .95 then you could buy as much as you can afford and then redeem it for 1.0451 SOL each. This burns the LST and you receive the SOL at the next epoch.
And that's the only catch -- you have to wait for the next epoch. That's why they depeg during market chaos. Your SOL is stuck for a couple days and you're carrying the "duration risk".
>doesn't that just make the investment riskier?
An LST is slightly riskier than SOL because theoretically the LST contract could be hacked.