Osmosis co-founder questions the effectiveness of ETH staking post-merge

2 years ago

Osmosis Co-Founder Sunny Aggarwal has questioned the effectiveness of Ethereum’s staking exemplary arsenic it volition not alteration withdrawal of staked ETH post-merge.

Currently, determination are 13.7 million ETH staked connected the beacon chain. According to the PoS design, the assets volition stay locked until the Shanghai update goes unrecorded successful the future,

In a commentary made disposable to CryptoSlate, Aggarwal said that the inability of users to retreat the staked ETH has contributed to the increasing deviation of Lido’s stETH terms from the underlying ETH.

Aggarwal added that if users could retreat their staked ETH, they would nett from the terms quality done arbitrage, Over time, the trading volition assistance bring stETH and ETH backmost to the desired 1:1 peg.

Concern astir post-merge security

Post-merge, Aggarwal said that Ethereum whitethorn beryllium much unafraid implicit shorter clip frames than successful the agelong term.

He explained:

PoS is precise unafraid implicit abbreviated clip frames owed to accelerated finality and all. But it’s insecure implicit longer clip frames, due to the fact that erstwhile you walk the unbonding period, you tin person what are called ‘long-range attacks’.

Aggarwal added that it is easier to change a artifact from implicit a twelvemonth agone connected PoS but astir intolerable connected a PoW concatenation similar Bitcoin.

Decentralization nether attack

Market quality platform, Santiment revealed that 46.15% of the PoS nodes were controlled by 2 addresses identified to beryllium to Lido Finance and Coinbase.

According to our #Ethereum Post Merge Inflation dashboard, 46.15% of the #proofofstake nodes for storing data, processing transactions, and adding caller #blockchain blocks tin beryllium attributed to conscionable 2 addresses. This dense dominance by these addresses is thing to watch. pic.twitter.com/KQdFNgGloD