TechFlow news, crypto analyst Phyrex posted a tweet stating that LSDfi projects resemble an infinite matryoshka doll centered around Lido. Although the staking rate of Ethereum (ETH) has exceeded 20% of its circulating supply, the fundamental nature of the LSDfi sector remains unchanged. Data shows that while the amount of staked ETH continues to grow gradually, the growth has already plateaued.
Phyrex pointed out that Lido operates under a "communal pot" model, which means users will never achieve the maximum actual returns from staking ETH. The longer one stakes, the greater the loss, posing risks to Lido's security. Additionally, official staking requires handling a minimum of 32 ETH, and setting up nodes independently involves high investment and long time costs for withdrawal.
Currently, participants and assets in the LSDfi space are relatively limited. Most staked assets come from institutions or are borrowed funds. The multi-layered nesting structure leads to high-quality assets being exchanged for lower-quality ones, resulting in poor liquidity. While LSD liquidity is currently weak, there are no immediate signs of collapse—yet problems could emerge if ETH prices surge significantly.
