🔥 Ethereum to cut 54% staking rewards, DeFi miners collectively lose their minds
A community proposal wants to slash ETH staking APY from 3.1% to 1.4%, claiming it’s to control the supply. But the ETH leveraged mining loop on Aave turns straight into a loss-making machine.
Protocols that rely on arbitrage loops—borrowing ETH → staking it → borrowing more ETH—see their yields cut and the strategy no longer works.
Lido and Rocket Pool’s LST holders also have to recalculate.
Some say this is the price of ETH becoming deflationary, while others say it’s forcing capital to exit. Either way, big staking whales have already started moving.
#ETH #DeFi #Ethereum staking
A community proposal wants to slash ETH staking APY from 3.1% to 1.4%, claiming it’s to control the supply. But the ETH leveraged mining loop on Aave turns straight into a loss-making machine.
Protocols that rely on arbitrage loops—borrowing ETH → staking it → borrowing more ETH—see their yields cut and the strategy no longer works.
Lido and Rocket Pool’s LST holders also have to recalculate.
Some say this is the price of ETH becoming deflationary, while others say it’s forcing capital to exit. Either way, big staking whales have already started moving.
#ETH #DeFi #Ethereum staking