Triangle debt or mild inflation: alternative perspective of RestAKing pledge

Source: Zuo Ye Crooked Neck Mountain

Ethereum is an innovative hot land. At least, Celestia proposed the concept of the DA layer. EigenLayer also created the hotness of the pledged track, technical driving innovation, and the final currency price also explained. Even UNISWAP can still rely on the cost switch.The old topic pulls up the price of the currency.

However, the growth of technology -driven has a limit after all. Just like you can eat two more bowls of rice, but you cannot penetrate the earth, the long -term sky laborer of technology is the “cycle”, such as the most well -known Kangbo (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela (Kandela)The Jayev cycle), roughly a round of 50-60 years. If ChatGPT cannot open the door to the fourth industrial revolution, then we have to use sticks and wood to welcome the Fourth World War.

Ten thousand years old, only fighting for the night.

The long -term cycle is not available, and there are shorts, such as Bitcoin halved, once every four years on time. For example, the re -pledged tokens on Ethereum, I premonition will develop along the currency price cycle I summarized.At the beginning of the concept-& gt; attract users-& gt; airdrop start-& gt; currency price place-& gt; short-term high-& gt; price decline-& gt;& gt; return to normal, then from time to time, the market starts to pay attention to the next hot spotEssence

The day and night are still too long, and the concept of pledge is enough for 5 minutes.

Re -pledge is a typical debt -driven economyIn the beginning, you face the driver of value -added. Only after the dual benefits of LSD and ETH pledge can you retain your own income. This leads to it more “impulsive” to find high returns, bringing higher income than LSD, but it will also cause triggersMore risk.
The security of Ethereum is sale againIn the past, L2 Rollup could only be priced according to the size of the Ethereum block space, which manifested as DA and GAS Fee, and then pledged the security standardization of Ethereum.Safety.

Let’s explain the second point first. Only by understanding what the products that are pledged and then pledged can we understand the rationality of the pricing mechanism and how to borrow the true ETH from your hands.

Safety internal rolls, capital overflow

The products that pledge are not complicated, in fact, the safety of the Ethereum main network is used.Whether it is ETH pledge or LSD assets, it is part of the Ethereum pledge system. In the past, they could only contribute to the Ethereum main network, and indirectly nurtured all kinds of L2 or applications on Ethereum.The security is allocated separately, providing DAPP or ROLLUP for the demand to remove the difference in the middlemenEssence

First of all, please do not have any doubts about the POS (Proof of Staking) mechanism. On the one hand, ETH selects the POS mechanism. The subsequent pledge is also extended based on the principle of security representative security.A 50% market share, the remaining public chain basically selects POS by default. The rationality of POS is recognized by all public chains except BTC. This is also the prerequisite for all our discussions.The more ETH pledge is, the safer!

At this time, the only danger to hold ETH is the decline in the U (ETH standard, then Ethereum will slowly move towards the de facto retreat, and ETH remains in your hands will definitely be more and more valuable.(This risk of being stolen or confiscated)

Secondly, in order to maintain the security and smooth operation of the Ethereum network, some ETH needs to be locked into the pledge system. This is for the necessary arrangements for network security. Everyone expresses it.So you need to pledge the income, which is interest.

The Ethereum Foundation summarizes 4 models that can participate in pledge:

Solo Home Staking alone: You need to own 32 ETHs, buy hardware to build nodes and access Ethereum networks. This is also the pledge behavior that is most in line with the concept of decentralization.It costs more than $ 100,000 or more;
STAKING AS A Service: If you have 32 ETHs, but you don’t want or have no money to buy hardware, you can take ETH custody to pledge nodes, but you can also retain a considerable degree of control. The disadvantage is that you are still you stillYou need to take out $ 100,000 at your own expense.
Pooled Staking is a familiar lido and other liquidity pledge (LSD) model. You pledge ETH at the same time as 1: 1 anchor ETH’s STETH tokens, and you can still exchange back to ETH.And STETH can be used to participate in DEFI to earn income, and the number of pledge is not limited. It is suitable for retail investors. The disadvantage is that STETH still has the risk of anchoring, which may lose ETH principal, and cause more serious losses to participate in DEFI.
CEX: Monthing is the simplest, the risk is the simplest, and you don’t introduce too much.

In this process,The LIDO and CEX models occupy the absolute mainstream, and the lido family accounts for about 30% of the current market shareThe exchanges such as Binance and Coinbase are also among the best. It can be said that Ethereum’s pledge and liquidity pledge (LSD) are actually synonyms. Even CEX can be regarded as another LSD model with higher permissions.

But whether it is pledge or liquidity pledge, it is essentially the same functional, that is, the pledge ETH provides security for the Ethereum network.The difference is that liquidity pledges provide additional liquidity incentives for pledge.

The pledge is to improve the original function of pledge, which can be understood as “part -time”.With the re -pledge system, the Ethereum pledged network can now undertake DAPP with security needs alone. At the same time, it can still provide security guarantee for the Ethereum main network, and apply for pledge rewards, LSD rewards and re -pledges.(Depending on the difference in mortgages)

This change of security purposes is not difficult to understand,Uncle Security in real life is theoretically to maintain the security of the community, but occasionally a card takeaway brother is also reasonable. If you put the takeaway in the security pavilion, it is actually equivalent to entering the community. Rollup will save money with EIGENDA.This is also the truth. If it is placed in the courier cabinet, it is equivalent to treating Celestia as a DA service, which will be cheaper.

If you have to take a takeaway or courier to the door of your home, this requires adding money or using high -end express delivery such as Jingdong and SF, which is essentially equivalent to using Taifang as a DA layer. The safest and most expensive choice.

Before pledge, take DA and other as an example. Either the expensive but safe Ethereum main network, or use the cheap but unclear CELESTIA and other services. Now use re -pledge, you can use the safety of Ethereum on the one hand, reduce the cost on the one hand, reduce the cost on the one hand, reduce the cost on the one hand, reduce the cost on the one hand, and reduce the cost on the one hand.Expenditure, at the same time, the existing multiple pledge income and the circulation function of the LRT pledged tokens are not limited.

DA is just an example. EIGENLAYER is essentially a bunch of smart contracts, not a public chain or L2. The service provided by Eigenlayer is actually equivalent to using Ethereum itself. It is a bit difficult to understand from the software level.Easy to understand.

For example, dog currency, although it is a POW token, has not been separated by a separate dog currency mining machine for a long time.In order to merge mining, one step further, there are very few responers when SOLANA mobile phone SAGA sells for $ 1,000, but after the supporting Bonk tokens burst out, it is also a “Merged mining“, Dig Saga to send bonk.

Sworing the head, theoretically not pledged in theory, the security of Ethereum can still be used by rollup, but the main network will be more expensive and the time will take longer.Re -pledge is actually the number of tokens after the pledged token after the pledge:

The composition of the re -pledged tokens is ETH or LSD. Any DAPP uses the re -pledged token to build its own pledge node network, which is equivalent to the security of Ethereum;
The more the number of token is pledged, the higher its active verification service AVS (Actively Validated Services), the higher the safety of ETH pledge, the more secure the principle of Ethereum is the more secure;
The pledge service can still issue its own tokens to be used as a voucher for participating in the pledge service, which is similar to the role of STETH. The following will be inconsistent.

Finally, in terms of providing security, the re -pledge of Eigenlayer has reached the limit. Other schemes are repaired on this basis, or support more public chains, or make some solutions to modify it, such as a solution to modify, such as a modification of some solutions, such as some solutions to modify, such as a modificationPuffer can share the dual income of LSD and LRT at the same time, or Ether.fi turns himself from LSD service to a re -pledge service.

However, our journey has not ended, Eigenlayer TVL exceeded $ 10 billion, Lido TVL exceeded US $ 30 billion, and ETH’s pledge is about 30 million pieces, worth $ 100 billion. If we think that the value of derivatives should surpass the spot, then thenThere are several or dozens of times of value -added space, but the value of the US dollar, gold or crude oil, and the recognition of all mankind,The capital overflow of Ethereum still takes a long time. This is also an important reason for the LSDs to be unsuccessful, or the re -pledge of the ceiling. The value takes time to pour.

Triangular debt or mild inflation

Re -pledge not only expands the boundaries on the function, but also has stronger profitability on the economic mechanism. This is not derogation, but objectively describing its operating process. From ETH to pledge/LSD, and then pledged, the three parties, the three partiesThe loop is indispensable. Among them, ETH provides security and income guarantee, pledged/LSD provides liquidity vouchers, and then pledged to provide quantitative security, and finally attributed to ETH itself.

It should be noted here that ETH’s security and income are built into LSD and re -pledge. Even if the LSD tokens are considered in the re -pledge system, it can also be decoupled into LSD and finally returned to ETH itself.

However, the problem arises. On the one hand, the pledge of two -layer pledge system is pledged. Each time it needs more income to cover the cost. Considering one situation, the earnings of ETH pledge is 4%.Only 4% can attract the pledge of LSD tokens. In the end, ETH’s re -pledge yield will be significantly higher than that of the main network pledge yield. If it is lower than the main network pledge yield or approach, then ETH is obviously unable to be attracted to the pledge system.

You can introduce the following conclusions. The pledge itself is an inflation system, which can be roughly divided into three cases to discuss:

The yield of ETH main network pledge is the most guaranteed, because each ETH holder is a source of profit. This is similar to the dollar coin tax. With the US dollar or ETH coins, it will definitely harvest the purchasing power slowly;
ETH liquidity is a “corporate debt” issued by Lido with a 4% income. STETH is a creditor’s voucher. Lido must be higher than 4% to maintain a balance. Each STETH is cast, and 1.04 is generated by Lido.ETH’s liabilities;
If the pledge of STETH is carried out, then the pledge of the network purchased this corporate debt at a price higher than 1.04 ETH, and then the pledged network gets the reserve, and you can continue to issue your own “currency”, such as all kinds of LRTs, such as all kinds of LRT.This is equivalent to the process of currency being manufactured. It should be noted that re -pledge is to create tokens based on credit. This is different from LSD facing ETH (real gold and silver of retail investors) to create credit is different logic, or more straightforward, or more straightforwardTo say, the pledge is the role of the bank.

I know that this is very abstract. It is better to have a actual case, that is, the famous “triangular debt”. In the late 1990s, industrial enterprises, especially the state -owned heavy industry in Northeast China, fell into a weird circle of vicious cycle:

The goods manufactured by large industrial enterprises cannot be sold, so they cannot make money and cannot pay for the supporting small enterprises;
The payment of small enterprises is suppressed by large industrial enterprises, and the lack of funds to expand reproduction is seriously lacking, causing the debt crisis;
Large and small enterprises have borrowed loans from banks. Most small enterprises are difficult for private to obtain loans. After large enterprises obtain loans, they still cannot sell, causing further backlogs;
The bad debt rate of banks has soared, and large and small enterprises have become more difficult to obtain loans. Until the economy is approaching, unemployment problems have impacted social order.

On the surface, the bad debt rate of banks is the problem, because their risk control model is basically not, and loans to large enterprises have become a political task.A production problem, that is, large or small enterprises cannot directly produce production according to market signals, and even completely decoupled with the production and consumption side. With an inertia, large enterprises do not want to change product quality. Small enterprises do not open up civil use civilian use.market.

However, from their own perspective, large enterprises can easily obtain loans, so they do not need to organize production according to the market. As long as small companies can sell to large enterprises, they will organize banks to loans to large enterprises sooner or later.Go to pay.

In fact, although the final triangle debt was “resolved”, it got rid of the burden on the bank by passing the debt. In fact, it was equivalent to not blame before.It was late, and the event was the Yangtze River Delta and the Pearl River Delta.

For the analogy, ETH is a large enterprise, LSD is a small enterprise, and then pledged is the bank. In this logic, it is not the simple ETH leverage, but the ETH-credit voucher-manufacturing tokens-the cycle of feed ETHThe core secret is that the yield of the entire circulation process is higher than that of ETH pledge yields, otherwise it will not debt debts, that is, after the entire debt exceeds economic growth, the economic growth cannot be repaid even if the interest on the debt is repaid, and it is even more impossible to eliminate it.Debt, currently the United States, Japan, and Europe are running on this road. Among them, the situation in the United States is the best, because the cost of the US dollar inflation must bear it, and you have USDT to bear it.

The debt economy is indeed unsustainable, but this method of engagement has its rationality. ETH is based on pledge. This is the biggest political correctness. It can only attack the pledge amount of the pledged services, not enough decentralization or security issues.But it is impossible to deny the POS itself.

As a manufacturer, ETH ensures the pledge income benchmark line. Whether it is LSD or pledge, it must be higher or close to the line, and LSD is passed on to re -pledged credit vouchers.In the higher income activities, from ETH to re -pledge, the re -pledged ETH certificate tokens in the market are already higher than 104% of ETH. As long as the user has not redeemed it, the wealth on the market is invisibly enlarged, and it is also invisible, and it is also invisibly enlarged.It brings stronger pledge purchasing power and debt repayment capacity.

However, the risk will be followed,Re -pledge is a credit -based “currency” system, then it is necessary to maintain its own credit to prevent users from crowdingLuna-USS is not far from Yin Jian. This depends on the return of the pledge system. In fact, the assets available for pledged in Eigenlayer include ETH, LSD, LP assets and other types.

The risk of LSD is the exchange rate of STETH and ETHIn theory, as long as the reserve is sufficient or there is a white knight to rescue the field, it is sufficient to be exchanged back to ETH when the crisis occurs, but on the one hand, the pledge system must ensure a high yield and meet the exchange needs.Although the relevant assets are safe, the yield cannot be guaranteed. If the excessive alternative assets are absorbed, its debt repayment capacity will be questioned.

At present, Eigenlayer TVL is also lower than lido. Excessive stacking causes an uncontrollable crisis. Considering a theoretical scenario: Lido only needs to return to the ETH standard. EIGENLAYER needs to return to STETH, and then return to ETH through STETH.If it is other tokens, there are still retreats-more complicated situations.(In fact, it is not necessarily necessary to have such a complicated mechanism)

Similar to the triangular debt, the surface of the pledge system operation is the income commitment of the re -pledged network, butThe core is the power of ETH. Except for the uncontrollable factors such as the security crisis of the contract. As long as ETH is strong enough, the higher the EVM ecological TVL.Beta is only trillion.

As long as ETH is accepted by more people and institutions, the pledge system is efficient and mild inflation, we will spend a warm prosperity period together, and all ETH -related assets will rise in prices, so until the building collapses.

Conclusion

The product that pledge is the security of Ethereum, and the economic model is mild inflation. Such a leverage is going up slowly.Instead of violence and violence of contract X125 times, the rise in ETH -related asset prices will not be as fast as Defi Summer.

But this does not have much to do with Lido’s tokens and Eigenlayer’s own tokens, becauseThe core of Ethereum is only ETH, and the second main network -related assets cannot be tolerated. This is the last bottom line for the Ethereum network under the POS mechanism.It is also the fundamental reason why Vitalik spray CELESTIA. All benefits belong to ETH.

Compared to Bitcoin,Ethereum needs to create a source of income for ETH, and BTC itself is the income itselfThis is a completely different situation. As for the pledge and re -pledge of other networks, they must first answer the necessity of their own public chains, otherwise it is just a gambling game that runs fast.