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Doesn't that token represent staked ETH, ie. ETH which nothing can be done with, ie. no "trade it, spend it, stake it on another platform, etc. " ? Now, you ta
by trhway 4y ago
Doesn't that token represent staked ETH, ie. ETH which nothing can be done with, ie. no "trade it, spend it, stake it on another platform, etc. " ?
Now, you take that new token, exchange into new ETH, stake that new ETH, and get again that new token, ad infinitum, every time increasing your staked ETH amount and thus accruing stake yield of that multiplied staked ETH ... One would naturally expect that a system allowing for such things to happen simply must undergo "Rapid Unplanned Disassembly" at some point.
- glerk 4y ago> Now, you take that new token, exchange into new ETH You can only exchange it back into ETH after the lock period is over. Sure, you can buy ETH from someone else in exchange for this token, but you will pay a premium for that: obviously, people prefer ETH to some token that can be exchanged for ETH in the future and there is not an infinite supply of ETH available to be sold for this token. So no, you can’t just increase your ETH ad infinitum. At each iteration of the loop, your amount of tokens will decrease until you have none left.
- MauranKilom 4y agoThat's just a different way to say you can leverage yourself close to infinity if you want. (How close depends on how much sETH trades to ETH on the dollar - if I understand the article correctly, it used to be pretty close.)
- glerk 4y agoYou can certainly leverage yourself, but not anywhere close to infinity. How much sETH trades to ETH depends on the supply and demand on each side. The more sETH tokens you bring to trade, the higher the price of ETH will be.