This is not the same as the UST drop because the underlying asset, ETH, is not directly affected by the market price of stETH, CoinShares said. The advantage of stETH is that it allows users to earn returns by staking ether, using a technique known as liquid staking. The ETH that has been staked continues to secure the network as intended, while users have access to a liquid asset that can be invested. According to the report, the Lido product can be classified as “premature” because the inability to de-stake makes the stETH function incomplete.
