I noticed that yields on Lido are much lower than other staking platforms because the stETH is paid out immediately thus leaving people who have staked and been matched with validators paying the bill of the newcomer until more validators come online. This has a couple of disadvantages.
- It means that yield will always be inversely proportional to growth. Since the more users sign up, the more validators are needed, and the more people the current yield is split between.
- It will be a disincentive to stake with Lido. Many potential stakers will see a lower yield than stakers without liquidity and be turned off.
Add a delay between when you stake and when you can claim stETH. This way long-time stakers are not being punished by having to pay yields of new stakers. This will take away immediate liquidity but it returns the yield to a reasonable rate and would be to everyone’s benefit, especially since the delay would be relatively small.
I hope this resonates as a see many people asking for airdrops proportional to when they first staked. This feeling is justified, they should be rewarded proportionally to their early commitment and not be left paying other’s people’s yield.