The discount on Lido Finance’s Ethereum-based token, stETH, rose above 5% amid a sell-off by large holders.
PeckShield researchers flagged large swaps conducted by wallets allegedly linked to Three Arrows Capital. In two transactions, more than 56,000 stETH were swapped for ETH.
#PeckShieldAlert $stETH down to 0.934 $ETH.
Three Arrows Capital transferred ~22,830 $stETH to $ETH
Here is an example tx: https://t.co/Y0HDukgy9F pic.twitter.com/ijqDISPZeA— PeckShieldAlert (@PeckShieldAlert) June 14, 2022
Earlier, The Block experts noted another large sale: on June 9, one wallet sold about 50,000 stETH.
The Lido platform for liquid staking provides users with stETH, which represent ETH, locked in PoS-networks on the Beacon Chain.
A decline in the price of the underlying cryptocurrency and a compression of stETH liquidity could exert further pressure on the price of the derivative asset. According to Curve, at the time of writing the pool’s ratio stands at 20% ETH to 80% stETH, which complicates swaps.
The impact on stETH’s price is also affected by the fact that users will be able to withdraw ETH on the Beacon Chain only after the Merge of the PoW and PoS blockchains. Presumably, this will occur in August.
What to expect from Ethereum’s upcoming major upgrade is in ForkLog’s exclusive feature: