Gain or Lose

Q10. Of the stakers that have swapped ETH to stETH, how much ETH did they gain or lose depending on the peg of stETH to ETH at the time of the swap? Repeat the same analysis for stakers who have swapped stETH to ETH; how much ETH did they gain or lose?

Methodology:

stETH is a token that represents staked ether in Lido, combining the value of initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are pegged 1:1 to the ethers that are staked by Lido.

The stakers of ETH on Lido swapped their assets and in this bounty we want to find the consequences of this swapping from ETH to stETH and vise veraa.

Price of ETH and stETH--> ethereum.core.fact_hourly_token_prices

Peg of stETH to ETH--> stETH/ETH approximately equal to 1

Swapping ETH to stETH--> ethereum.core.ez_dex_swaps

Pool address--> '0x4028daac072e492d34a3afdbef0ba7e35d8b55c4'

Input--> ETH and output--> stETH

For swapping from stETH to ETH, the parameters related to input and output must be changed.

Outcomes:

The peg of stETH to ETH as defined in the methodology shown in this figure. As shown, the mentioned peg dropped largely since May 7, 2022.

First look at the swap behavior of stakers from ETH to stETH. As shown in the first figure, most of the days, swapping ETH to stETH caused gaining ETH and only in few days caused losing ETH.

The donut verified the results of first figure and in 90% of days in 2022, the stakers that swapped ETH to stETH gain profit.

ETH to stETH

stETH to ETH

In this part, the swapping behavior of stakers from stETH to ETH in 2022 is analyzed.