Hey there!
Really appreciate your feedback and the valid points for a discussion.
I’ll focus on the quoted question and will share my personal vision here, as i this is as quite heavy question & risk highlighted and that i’ve also considering contributing on stVaults design.
In the first part “What percentage of total protocol stake do we want in stVaults vs CSM / SDVT / Core” my personal preference is, well: as high as possible.
And this is definitely a hot take, but with some nuances:
Firstly, as stated in Lido v3 Whitepaper RFC Lido Core is a backbone of stVaults design, providing baseline institutional grade risk-rewards staking profile on the market with deep liquidity.
Therefore what i mean by “as high as possible” is stVaults on top of Lido Core as a flexible customizable staking setups utilizing existing stable, again, baseline.
There are different actors within staking ecosystem, and they have different preferences. And even the best product (which I personally consider Lido Core) couldn’t suit all the needs - and that’s absolutely normal.
So what i would see as a purpose and as a win for stVaults is creating multiple products, representing different actors preferences on the market on top of Lido Core as a fundamental layer within the system.
And why do i think it’s important?
That’s connected with the second part of the question:
" how do we prevent the B2B side from eating all the oxygen and regressing back to a more centralized Lido"
The simple answer is - the same as Lido’ve prevented centralization of the stake when it was created: by providing the product that is best from users perspective and creating the incentives for decentralization within.
But this time on the different segment(s) of the staking market - which already may be starved on oxygen
The current design (Risk Assessment Framework for stVaults) is already favoring more decentralised setups and disincentivize stake concentration, with more ways to gover the market stated in Core Pool Sustainability Incentives section in Lido V3 Whitepaper.
From this scope i don’t see stVaults and Lido Core competing for stake (or share within protocol): it’s different layers for different actors to utilize on the open market, while DAO provides incentives focused on fostering healthy staking market