https://blog.lido.fi/liquidity-mining-era-2
Bycontrast,RocketPoolhasaproprietaryalgorithmsystemformanagingincentivestobothstakersandnodeoperators.Mostimportantly,thissystemautomaticallyadjustsincentivesbasedonmarketcompetition,ensuringthattheyarestableyetstillappealingtousers.Inaddition,RocketPoolinsistsongivingstakersandnodeoperatorsampletimeforthemtocomeupwithasounddeterministicplanbeforeimplementinganychanges,inaccordancewiththenatureofstableandpredictableprotocolgovernance.
3-TechnicalHeadwindstostETHGrowth
LidohadosuccessfullyforciblyimposeditselfastheclearleadingEthereumLSDproviderthroughsuccessfulmarketpenetrationandhighbudgetedadvertisingcampaigns.However,Lidohasclearlyfacedagrowingcompetitionandproductintricacyinrecenttimes.RocketPoolhassignificantdifferentialsinitsprotocoldesignandarchitecturecomparedtoLidos,severalofwhicharecriticalinaddressingthetechnicalheadwindstowardaPareto-likeconcentrationofpower.
LimitationonETHStakeAmount
OneofthecriticalcomponentsofHasuandGeorgiosargumentforconcentrationofpowerinLidoshandsistheclaimthatthewholestETHsupplyisgoingtobestaked.Allstakers,whetherfrominstitutionalpool,CEXpool,oratos-staker,areboundtoenablenumbersnearesttothehighestcontrolingpoolrival.Lidosdominancehasbeenaugmentedbyitsabilitytoexpandthisstakingcontingent.However,suchgrowthisunsustainableinthewidercontextofEthereumsgrowth.ItisinevitablethatgapsinthemarketwillariseandthatdemandforEthereumstakingwilloutpaceavailablesupply.GivenRocketPoolsdecentralizedarchitecture,itismorepracticaltodeployvaluablestakepoolsinuniquegeographicalcontextsandwithdifferentresourceprofiles.Here,theRocketPoolarchitectureallowsforamorediverseandagileecosystem,counterbalancingpowerlawpressuresthatareattractedtoLidoshomogeneityanddependenceonawholisticapproachtostaking.
CentralizedOff-ChainPriceFeedsandTrustMinimization
LidosPareto-likecontrolintheEthereumstakingspherehasbeenfueledbyitshighlycentralizedpricingandrewardfeed,anditispreciselythiscentralizationthatisLidosachillesheel.Themainvulnerabilityofsuchacentralizedpricingmechanismisthatitcreatesanairgapoftrustconcernbetweenunderlyingstakingassetsandthaliquiditythatstakestakersout(LSDtokens).Themainway(Rational)stakerstakeadvantageofthisairgapisbyfront-runningofmedianodepricechangesonETH.AsstakedETHcontinuestogrow,itisunlikelythatLidoscentralizedoff-chainpricefeedswillbeabletoremainscalable,MEV-resistant,and(FE?)frees.Incontrast,RocketPoolusesanon-blockchainpricefeedthathardlyexpendsgaswhilestillrelayingdataaccurately.Itdoesntrequireacentralizedoracleoranythirdpartytooperateandreview,therebyeliminatingtheseentrenchedcentralizationriskscompletely.
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