/biz/ - Business & Finance

>>55326775
Staking derivatives providers decide where the voting power is allocated.
This means they will allocate voting power to validators they support, shifting the voting power of the hub towards the cartel goals.

Zaki vision is that it won't be enough to stake Atom, you will have to liquid stake and add it to LPs or loan it out to be profitable, this is a way to defacto take control of the hub by making normal staking not profitable and forcing people to loan their ATOMs or lp them while using staking derivative which allocate voting power with their internal policy which can be easily controlled by teams or insiders.
ATOM should never become dead mass which is profitable only if employed in DEFI through staking derivatives.

ATOM2.0 plan removes the democratizing aspect of staking rewards, when you remove the organic source of yield it requires protocols to source their own yield which is a more attritional game that favors actors with more capital, better talent and more time to dedicate to squeezing yield (aka rich get richer).

liquid staking decreases the sovereignty and decentralization of the hub by defacto surrendering your voting power to an external entity, substituting 175 validators with 1 LS provider.

The higher the yield the higher the amount of ATOM that is liquid and available to be used in DEFI protocols at any moment, reducing rate of availability of liquid supply means DEFI on cosmos will prioritize staking derivatives, a naturally high yield means staking derivatives are less competitive as collateral, cause of the high availability of spot ATOMs.

Staking derivatives are not a profitable yield opportunity in real terms, stkETH/ETH is yelding less then US treasuries if you account for inflation and ETH drawdown versus the $ its a net negative yielding opportunity and that's a mature market with DEFI integration, clearly the goal of staking derivatives is not profitability, they know its not profitable, they care about control not yield.

>>55293434
Zaki is not better, he is clearly always on drugs.
He says he is a developer but i haven't seen any serious github commits from him, king of larpers.
Greediest jeet in the entire ecosystem with shady ties to the democratic party through rebecca liao his handler, they have been used by the sec, circle and lido to backdooor the hub and strengthen the case for it being a security through his ATOM to 1000$ LFG stunt during last September drugs fueled cosmosverse.