Liquid staking has an unbelievable set of tailwinds behind it. This isn’t an overhyped trade but instead a growing cornerstone of the ETH economy.

A few thoughts: 🧵 1. Staking participation rate is expected to go up. Currently 13% but likely to double+ shortly after withdrawals.

I think we'll plateau towards 40%+ as staking becomes much more approachable with the ability to exit and withdraw in Shanghai.

Prediction: withdrawals will ultimately result in significantly *more* ETH being staked on the beacon chain, but it'll be a bumpy ride.

Something like:

T-3 days: Exit queue grows huge as people front-run a perceived rush to exit. Price goes down. FUD peaks here. T-0 (fork): Exits process quickly and queue starts to shrink. Activation (entry) queue starts to grow both from new entrants and also reshuffling of exited validators to new services. LSD premiums/discounts shrink.

Staking is now a fully open-loop process and everything changes.

Staking isn't always the most exotic flavor of crypto, but there's a *ton* of great stuff going on under the covers that you might not know about.

Here's a deliberately incomplete list of the tech that I'm following and most excited about. 🧵 1/ #1: Withdrawals

This one is so obvious that it’s almost a freebie, but it’s a Big Deal™. Among other things:

- Yields will be able to finally have compounding returns since surplus ETH is able to be skimmed and put to work. 2/

On @BanklessHQ, I argued that $rETH is actually the highest yielding liquid staking token, when adjusted for important factors such as performance, commission, risk, and taxes.

Here's a rough visual calc of *why* I believe $rETH has a ~25% higher net-yield than competitors. 1/ Note that there are several important caveats, so this is to be taken with a grain of salt.

1. All of these numbers are subject to change (performance, commission, risk, etc.). Well, maybe not taxes... 2/

Rocket Pool: the scaling thread.

tl;dr: @Rocket_Pool is quietly building at least 3 massive scaling solutions that will enable it to have ~1000x growth and easily compete at scale with Lido. 1/ Don’t sleep on it. The bear market is for buidlers and we can do better than what the incumbents offer. 🚀 2/