🚀Ethereum staking is on the rise, but JPMorgan warns of centralization risks & reduced yields!📉 Since the Merge & Shanghai upgrades, ETH staking has grown, but the network is more centralized & staking yield has fallen from 7.3% to 5.5%.😱

🔍Many looked to Lido, a decentralized liquid staking platform, as a better alternative to centralized platforms. Lido is adding more node operators to address centralization concerns.👥

🚨However, centralization risks remain! Concentrated liquidity providers or node operators could become single points of failure, targets for attacks, or collude to create an oligopoly.🔥

💧Another risk is rehypothecation, where liquidity tokens are reused as collateral across multiple DeFi protocols. This could lead to a cascade of liquidations if a staked asset drops in value or is hacked.😨

🤔What do you think? Are the risks worth the rewards? Share your thoughts in the comments!💬