Research Summary
The research report discusses the potential of unshETH to become a liquidity hub for LSDs. The platform aims to create shared liquidity for a diversified basket of LSDs, offering easy access to liquidity for lower-cap tokens and improving the overall decentralization of validators. The report highlights that assets in the basket have a governance-determined maximum weight to mitigate the impact if an asset in the pool depegs. This approach differentiates unshETH from platforms like Curve and Balancer, which have uncapped weights for stable pools.
Actionable Insights
- Consider the potential of unshETH: As a liquidity hub for LSDs, unshETH could offer easy access to liquidity for lower-cap tokens and improve overall decentralization.
- Understand the risk-adjusted yields: The report suggests that a diversified basket of LSDs offers better risk-adjusted yields compared to singular LSDs, but it also adds additional smart contract and governance risks.
- Compare with other platforms: Unlike Curve and Balancer, unshETH has a governance-determined maximum weight for assets in the pool to mitigate the impact of any asset depegging.
