How can we improve the stETH ETH peg?

Right now the stETH to ETH rate is at 0.977. stETH is almost 2.5% cheaper than ETH.
This is discouraging people to stake their ETH with Lido.

In the last 7 days only 1500 stETH have been created (~210 stETH per day), against 182k ETH since December 18 (~2500 stETH per day).

We should add incentives to improve the stETH to ETH rate so people choose Lido for staking their ETH.


I don’t think pointing out the fact that there has been a decrease in ETH staked from now since December is entirely significant. Lido launched in December, got a lot of hype (Eth2 Phase 0 as well), hence why many people staked then compared to now.

This proposal helps to improve the peg between stETH and ETH, and will soon be taken into effect. Future integrations with other protocols (eg. Aave, Maker) will also benefit the peg aswell.

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I’m certain this is due to the composability of regular ETH vs stETH. There’s no reason for this though, and it seems like free money to swap into stETH on Curve. As @cryptodenier mentions, DeFi integrations are coming!

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