Opinion: stETH Faces Depegging Risk, Potentially Triggering Liquidations on Lending Protocols

According to a report by Jinse Finance, Jlabs Digital analyst Ben Lilly pointed out that stETH is currently being withdrawn from Lido. Meanwhile, another lending protocol, Figment, is absorbing Lido’s market share, which suggests that Figment could potentially be a staking partner for ETFs. 32% of stETH (wstETH) is being used as collateral in lending protocols, and a depegging event could trigger liquidations within these protocols. Notably, at present, 278,000 wstETH are in a “high-risk” state (with high risk defined as a health factor between 1 and 1.1).