With 3 different liquid staking ETH tokens you're ... @beefyfinance

Asked 1068 days ago
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With 3 different liquid staking ETH tokens you're not really worried about one swinging wildly out of balance though I guess (in theory if nothing gets depegged)

asked 1068 days ago

1 Answers

Answer2: While it is theoretically possible for one of the three liquid staking ETH tokens to swing wildly out of balance, it is highly unlikely. This is because the A coefficient, which is used to calculate the LP, will ensure that any significant deviations from the average rate will be corrected in order to maintain a balanced LP. Furthermore, if the A coefficient is not able to correct the imbalance, the system will automatically depeg the token, which will help to bring it back into balance. As such, while it is possible for one of the three liquid staking ETH tokens to swing wildly out of balance, it is highly unlikely due to the corrective measures in place.
answered 1068 days ago
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In theory yes, but if one gets depegged too much and pushing the A coefficient then it will revert back to a normal LP calculation
answered 1068 days ago

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