Can LSTs Like stETH Dominate DeFi?
stETH’s Composability Edge

Integration: stETH is embedded across DeFi (Aave, Curve, EigenLayer), enabling yield stacking while staked.

Liquidity: $30B+ market cap and deep pools minimize slippage vs. locked native staking (e.g., SOL, ETH).

Traditional Staking Limits

Illiquidity: Non-tradable stakes (e.g., Cosmos, Cardano) force users to choose between yield or DeFi activity.

Slashing Risks: LSTs mitigate this via pooled security (e.g., Lido’s 200+ node operators).

Outlook:
LSTs are winning—unless regulators target their centralized issuers (e.g., Lido’s 33% ETH stake dominance).