►
Description
Visit the https://archive.devcon.org/ to gain access to the entire library of Devcon talks with the ease of filtering, playlists, personalized suggestions, decentralized access on Swarm, IPFS and more.
https://archive.devcon.org/archive/watch/6/the-future-of-liquid-staking/
Liquid staking is now a major factor is the staking economy and staking protocol design. I'm going to lay out how I think it's going to interact with future DeFi, protocol development, MEV, interchain communication, L2s and modular blockchains. How liquid staking protocols will have to change with the blockchain world, and how to make them to shape themselves better.
Speaker(s): Vasiliy Shapovalov
Skill level: Intermediate
Track: Staking & Validator Experience
Keywords: Liquid Staking,DeFi,Validator
Follow us: https://twitter.com/efdevcon, https://twitter.com/ethereum
Learn more about devcon: https://www.devcon.org/
Learn more about ethereum: https://ethereum.org/
Devcon is the Ethereum conference for developers, researchers, thinkers, and makers.
Devcon 6 was held in Bogotá, Colombia on Oct 11 - 14, 2022.
Devcon is organized and presented by the Ethereum Foundation, with the support of our sponsors. To find out more, please visit https://ethereum.foundation/
A
A
Folks,
my
name
is
I
work
in
Lido,
and
what
I
want
to
talk
about
today
is
what
I
think
will
be
the
future
of
liquids.
Taking
I
really
love
the
crowd
by
the
way.
There's.
So
many
of
you
a
bit
about
last
us
and
about
me
why
I'm
talking
about
this
I'm,
a
depleted
Lido,
which
is
a
dial
that
headquartered
on
the
theme
that
makes
Luke
is
taking
protocols,
and
it
maintains
the
largest
liquid
sticking
protocol
in
existence
right
on
the
denim,
which
has
a
bit
more
than
4
million
Heather
in
it.
A
You
know,
like
all
the
stake
in
the
common
area,
without
80
billions
and
liquids
taken
protocols
that
together
are
about
8
billions
or
so,
and
if
we
add
to
the
liquid
sync
protocols,
also
liquids
taken
on
exchanges,
which
I
think
we
actually
should
count
among
the
consequent
options.
It
will
be
closer
to
20,
billions,
I,
think
so
Lots,
but
not
overwhelming
part
of
state
and
economy.
A
So
I'm
going
to
like
I'm
not
going
to
do
any
deep
insights
here
like
I'm,
don't
pretend
there
is
something
I'm
going
to
say.
That
is
not
pretty
obvious,
I
think
but
I'm
going
to
say
it
anyway.
I'm
going
to
make
three
predictions.
Basically
one
is
that,
like
protocol
based
liquids
taken
could
grow
alongside
the
fire
system.
A
When
the
fire
system
growth,
a
liquids
taken
protocols
grow
with
it
when
it
doesn't
grow
and
stagnates
that,
like
liquid
state
will
not
protocols
will
not
grow
like
there
will
be,
people
will
use
sticky
knock
changes.
Instead,
there
will
be
a
lot
of
options
for
liquids
taking,
but
few
of
them
will
be
Witness
and
the
like.
Who
will
be
the
winner
who
will
be
the
winners
will
be
determined
by
stakers.
A
They
they
will
be
the
the
one
with
who
vote
with
their
money
about
like
what
the
future
would
look
like
now
in
a
bit
of
more
details,
area
of
this
statement,
I'll
talk
about
it.
So
our
experience
at
Lido
building
liquid
taken
protocols,
many
chains-
we
have
like
one
on
ethereum,
one
on
salana
on
polygon,
on
polka
dot.
The
thing
is
liquids
taking
protocol
growth
is
driven
by
defy
ecosystem
growth.
A
Whether
when
there
is
a
low
amount
of
defy
penetration,
liquid
sinking
will
also
be
pretty
pretty
small,
and
when
there
is
like
a
very
strong
Academy
like
an
ethereum,
liquid
thinking
would
be
will
be
very
popular.
There
are
other
factors
but,
like
that's
primarily
I,
think
like
when
people
want
to
use
the
other
in
defy.
They
will
rather
use
some
kind
of
second
stake
and
liquid
second
token,
in
the
file
when
they
don't
use,
want
to
use
either
and
defy
they
don't
care
about
State.
The
rocket
pull
leather
Etc
so.
A
And
the
main
competition
are
the
wallet
guns
of
C5,
like
exchanges
have
liquids
taken
since
forever.
It
works
very
seamlessly,
it's
very,
very
easy
for
the
user.
They
like
just
deposit
the
tokens
that
they
use
to
used
to
if
they
are
working
with
exchange
and
it's
automatically
sticked,
it
can
be
often
used
as
collateral
for
margin
trading
like
it
has
most
of
the
users
that
people
want
liquids
taken
for
and
if
you
don't
care
about
being
in
decentralized
finance,.
B
A
You
don't
care
about
like
this
being
not
your
keys,
it's
perfectly
serviceable
so,
and
the
product
is
just
better
than
regular
stake
in
the
liquids.
Taken
is
better
for
users
than
regular
stickers.
The
adoption
barriers
that,
like
a
major
problem
for
liquids
taking
protocol
growth,
is
smart
contract
risk
governance,
risks
and
sometimes
tax
implications.
A
The
smart
contractors
can
governance
risk
on
one
hand
they
go
down
with
time
so
like
with
time.
People
start
starting
to
trust
more
the
protocols
for
good
measure
because
they
haven't
been
hacked.
They
are
like
less
likely
to
be
hugged
in
the
future
same
about
governance,
and
still
it's
not
worth
it
like,
if
you're
not
using
to
use
the
token
and
defy
like
if
you,
if
you're,
not
using
no,
not
going
to
trade
it
or
collateralize
it.
You
don't
want
to
take
this
additional
risk.
A
And
there
are
like
a
multiple
options
for
building
liquid
sticking
protocols
and
like
with
the
chicken
in
general,
not
just
protocols
that
are
going
like
exist
already
or
will
be
existing
going
forward
and
to
talk
about
them.
We
need
to
understand
what
is
liquids
taken
as
a
product
like
who
are
the
users?
What
do
they
want,
and
there
are
three
kind
of
users
like
three
kind
of
stakeholders
for
like
it's
taking.
One
is
the
stakers.
They
are
most
important
here
and
they
once
taken
Awards.
A
They
want
security,
they
want
liquidity
and
usability
in
in
finance.
Basically,
protocols
Community
want
the
best
solidity
set
for
the
protocol,
that
is
decentralized,
sensorship
resistant
and
not
operators
in
protocols.
They
want
to
run
a
stable
stake
in
business
if
they
are
professional
and
if
they're
hobbyists
they
want
to
be
like
I,
don't
know,
respected,
they're,
not
rational,
they
just
do
it
for
the
fun
and
for
the
feeling
of
contribute
contributing
to
destroyalization,
which
is
great
so.
A
And
the
options
that
are
available
will
be
available
in
the
future
are
broadly
it's
custodial
option.
The
exchange-based
liquids
taken
forecast
that
you
basically
sticking
it's
protocol
that
are
based
on
risk
management.
It's
protocol
that
are
based
on
bonds
for
security,
they're,
hyper-compliant
protocols
and
Marketplace
types
type
protocols,
so
Castor
yeah,
I'm
listing
them
in
the
order
of
adoption
custodial
liquids
they
can
like
a
change.
A
A
A
They
can
offer
very
competitive
rates
compared
to
others,
like
the
the
this
option
will
likely
win
on
profit
liability
going
forward.
It's
not
the
case
right
now
because,
like
coinbase
takes
a
lot
of
a
lot
of
fees,
but
they
have
much
more
options
to
go
all
over
on
fees
because
they
can
double
dip
in
vertical
Integrations.
A
They
have
usually
subver
value.
Data
sets
so
like
the
don't,
provide
a
like
that
much
value
for
like
as
much
value
as
it
could
for
the
protocol,
because
they
select
few
operators
with
little
diversity
in
jurisdiction's,
physical
locations,
etc,
etc,
and
it's
not
transparent
and
they
are
susceptible
to
regulatory
capture,
because,
like
C5
solution
like
extremely
regulated
risk
management
based
protocols,
they
are
non-custodial.
They
manage
slation
risks.
A
Protocol
wide
by
creating
creative
value
data
sets
that,
like
minimize
risks,
they,
therefore
they
are
usually
Capital
efficient,
so
they're
easy
to
grow,
they're
easier
to
to
accept
stake
and
for
like
for
the
competitive
advantage
on
user
side,
they
rely
on
the
fire
system
so
like
when
the
fire
system
is
better
than
any
any
single
wallet
Garden
of
of
a
change.
They
can
offer
a
good
that
alternative
to
centralized
exchanges
valid
data
set.
A
They
have
are
like
very
different
in
in
in
design
because
and
in
quality.
They
can
be
big,
they
can
be
small.
They
can
be
like
consist
of
one
operator
which
is
like
the
same.
The
protocol
operators
basically-
and
they
that's
because
like
the
managed
protocol
set,
is
the
valid
data
set,
is
basically
the
major
part
of
the
product
here
and
that's
where
they
give
her
very
much.
A
It
can
be
good.
It
can
be
bad.
It
like
depends
on
the
protocol
bonded
protocol.
Also
non-custodial.
They
manage
slash
the
risk
by
acquiring
validator
bonds
that
makes
them
Capital
efficient
because
validators
like
the
good
value
like
the
not
operators
Community,
they
don't
usually
have
a
lot
of
money
and
when
they
are
required
to
provide
bonds.
A
It's
it's
really
high,
like
most
of
the
wells
have
worldwide
like
a
few
dozens
of
whales
at
when
the
protocol
is
at
scale
that
they
are
either
providing
a
loan
or
their
operating
cells
at
scale
and
take
the
majority
of
the.
What
is
data
set,
this
option
of
hyper
compliant?
One
is
not
very
different
than
Tech
side
from
risk
management.
A
It's
different
approach
because,
like
it's
seven
point
and
Main
feature,
is
that
the
valid
data
set
is
extensively
vacated
and
certified
and
regulated,
and
they
are
likely
to
not
deliver
well.
It
just
said
that
the
protocol
Community
want
and
I
don't
think
there
will
be
much
liquid
usable
because,
like
usability
and
defy
requires
like
they,
they
made.
Clients
are
people
who
I
have
like
very
scary
or
regulations.
A
The
second
by
size
is
custodial,
but
it
will
very
quickly
jump
to
one
by
one
when
withdrawals
are
possible
and
every
other
on
every
any
exchange
can
be
staked
more
safely
than
right
now,
and
the
third
type
is
bonded.
It's
rocket
pole,
it's
a
third
third
position
and
by
growth,
speeds
right
now,
coinbase
liquids
taken
token
grows.
The
fastest
lidoor
has
the
second
place
and
rocket
pole
is
the
third.
So
this
is
the
current
trend.
A
Value
I
think
that
only
risk
management
based
protocols
can
deliver
good
value
data
set
at
scale
because
at
scale
the
like.
The
main
thing
that
you
deliver
for
a
protocol
is
a
good
valid
data
set
and
if
you
don't
have
an
opinionated
selection
algorithm
that
says
that,
like
the
good
wallet
data
set
should
be
defined
like
survey,
diverse
should
be
diverse.
In
jurisdiction
in
should
be
pretty
flat,
and
distribution
of
stake
should
be
diverse,
geographically
and
like
in
in
cloud
and
on-premise
operations,
etc,
etc.
A
That's
that's,
essentially.
What
like
Risk
Management
is
your
monetary
for
the
protocol
as
well,
so
I
think
there
are
two
possible
outcomes
for
the
future
of
idiom
is
one.
Is
that
like
most
of
the
stake
is
in
the
risk
management
protocol
that
provides
a
good
quality
asset
minority
isn't
custodial
and
one
that
is
like
the
on
the
third
place,
and
the
beta
outcome
is
vice
versa,
when
most
of
the
stake
is
custodial
and
the
rest
is
in
protocols.
A
So
anyway,
whatever
I
think
on
that
it
doesn't
matter
much
because
I'm,
not
the
one
who
decides
who
will
win
and
like
who,
who
will
lose
and
like
what
will
be
the
best,
the
the
the
largest
options,
it's
a
stakers
who
decide
that
outcome
like
not
not,
operators,
they
are
agents,
they
operate
like
either
very
small
amounts
of
their
own
stake
or,
like
large
amounts
of
other
people's
money.
They
do
not
decide
like
who
who
is
going
to
be
the
winner?
A
It's
not
stake,
aggregators,
like
protocols
or
custodies,
because
users
stakers
actually
decide
which,
which
aggregated
to
use
it's
not
protocol,
researchers
or
developers
because
they
design
like
a
neutral
protocol
that
can
be
used
by
other
people
which
has
takers
to
to
have
the
desired
outcome.
It's
not
voices
on
crypto,
krita,
Twitter
or
like
protocol
governance.
It's
it's
going
to
be
less
takers.
A
Current
state
of
ethereum
stake
increase
the
direct
result
of
stakes,
making
the
choice
in
the
past
like
they.
Why
is
lighter
big?
Because
people
sticks
with
lighter?
Why
is
like
a
coinbase
big,
because
people
decide
to
stick
with
coinbase?
The
future
will
be
a
result
of
stakers
making
the
decision
going
forward.
A
A
A
lot
of
ADA
is
holders
are
in
regulated
addictions
to
comply
to
local
Rex
and,
if
vocal
Rex
say
them
to
stake
in
a
specific
way,
they
will
likely
to
comply
the
funds,
the
like
the
cost,
studies,
etc,
etc.
They
will
have
to
the
second
curveball.
Is
risk
taken
shout
out
to
Angela
it's
basically
using
the
same
stake
on
multiple
protocols.
A
The
the
main
idea
is
like
you
can
stake
either
in
in
the
living
room
protocol
and
then
can
use
the
vowel
chat
of
the
text.
Data
like
stacked
at
the
token
or
like
a
error,
is
token
or
something
as
a
stake
in
a
different
protocol.
That
does
something
different
and
it's
subject
to
to
additional
slashings.
If
something
goes
wrong,
that
leads
to
a
combinator
explosion
in
potential
risk
and
rewards
profiles.
A
So
right
now,
it's
pretty
easily.
It's
pretty
easy
to
funch
than
fungible
the
staking
positions
like
you
manage
the
risk
and
rewards
and
that
you
get
can
get
liquid
token
out
of
it
like
oh
make
it
bonded
or
something
when
there
is
a
lot
of
options
for
getting
additional
rewards
for
taking
additional
risks,
which
is
going
to
happen
if
any
glass
takes
off.
A
B
A
I,
don't
quite
get
the
question
I'm
going
to
answer
as
best
as
I
can
so.
Lido
is
a
protocol
that
takes
stake
as
ever
and
it
distributes
to
a
valid
data
set
in
a
specific
way.
This
Valley
data
set
is
selected
in
a
way
to
the
risk.
The
stake
that
holders
so
like.
Are
you
slashing
risks
and
to
make
the
validator
set
of
ethereum
beta
as
well
so
like?
We
try
to
deceive
it
in
a
way
that
will
be
increase.
A
C
A
So
I
think
that
it's
not
going
to
become
dramatically
easy
for
a
long
time.
The
reason
is
like
before
protocol
classification,
it's
really
hard
to
maintain
the
the
notes
in
like
in
a
good
State,
because
there
are
a
lot
of
grades
and
like
hot
fixes
and
stuff,
but
imagine
it.
It
is
becoming
dramatically
easier.
Then,
on
like
on
liquid
stake
and
I
think
it
will
result
will
be
that
there
will
be
more
solo
operators
in
it
like
every
product,
like
every
protocol,
will
that
that
will
be
a
big
enough.
A
Will
conversion
like
on
some
hybrid
model
of
having
most
of
the
stake
and
risk
management
and
less
taken
bonded
solution
for
permission,
separatus
just
to
promote
the
solo
stickers
and
the
removing
of
barriers
will
lead
to
more
solo
stickers
and
like
a
bit
more
importance
for
door
to
hand
this
feature?
That's
my
guess.
D
Hello,
it's
really
nice
to
meet.
You
I
have
two
questions.
Why
actually,
first
of
all,
first
one
I
would
like
to
understand
what
you
see
as
the
biggest
risk
for
the
legalist
taking
industry.
Are.
They
is
taking
industry
as
a
whole
right
now
and
second
one.
What
do
you
see
as
the
biggest
risk
for
later
right
now.
A
But
it's
like
existing
in
a
very
toxic
environment
where
any
like
any
mistakes
gets
exploited
like
very
fast,
so
smart
contract
risk
is
probably
them
they're,
like
the
the
major
risk
and
on
a
more
like
economical
side,
I
think,
like
I'm,
really
thinking
that
exchanges
wallet
got.
Lack
of
sify
are
really
a
like
a
very
strong
competitor
to
protocol
based
liquids
taken
because
centralization
is
more
like
it's
cheaper
and
people
care
a
lot
about
APR.
So.
E
So
I
have
some
statistics
on
the
library
tokens
emission
is
kind
of
like
outdated,
but
it's
something
to
me
nice,
so
the
token
incentives
that
the
emissions
in
the
last
seven
days
is
five
millions
in
terms
of
tvl,
while
the
rifle
news
is
only
600k.
Do
you
think
it's
that
people
actually
value
the
governance
of
Lido
itself
as
a
electric
sticker,
or
it's
kind
of
like
being
overvalued?
A
A
That's
the
only
reason
they
exist.
The
staking
rewards
are
the
main
reason.
People
people
have
sticked
it.
There
is
like
of
over,
like
four
million
of
weather
in
Lido
I,
think
about
between
two
hundred
thousand
and
six
hundred
thousand
obsteta
is
locked
in
maybe
700
I,
don't
know
it's
locked
in
in
in
into
in
centralized
pools.
So
I
think
that
when
I
was
wrong,
side
like
are
in
that
will
be
completely
unnecessary
and
will
change
everything
like
the
incentives
will
be
slow,
but
the
protocol
will
be
just
as
useful.