Method :

1. Using ethereum.core.fact_hourly_token_prices to get the daily average price of derivatives.

2. Since rETH and aETH cannot be used as collateral for loans in AAVE, only stETH is analyzed for the effect of liquidation on the price.

3. Currently, line charts are the only way to show the comparison of numerical data on small and large scales, which is why these charts have been used.

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Analyzed time period: Past 200 Days

2.How do news and events affect the price of Ethereum derivatives?

during the UST depeg crisis (6 May 2022), bETH depositors (a wrapped bridged version of stETH on Terra) moved their tokens back to the Ethereum mainnet amid fears of the network’s stability.

The report stated that 615,980 bETH was bridged back to Ethereum during this time and was unwrapped back to stETH.

It is this stETH that was then sold back to Ethereum that started the selling pressure on the stETH/ETH peg, an increase of 567k stETH was added to the stETH/ETH pool of Curve, creating an imbalance and forcing Lido to take measures to attempt to restore the peg.[source]

since May 6, following the Terra crisis, stETH has lost its peg to ETH and has not yet been able to get it, also on the same date, rETH and aETH have also suffered a price drop and lost their bond for a short time.

As it is clear in the depeg charts, another factor affecting the price of ETH derivatives is the fear of illiquidity or negative news.

Conclusions :

1. The effect of negative news and fear in the market on the dpeg of ETH derivatives is quite clear.

2. Among the derivatives of the price stability mechanism, rETH has been able to maintain the price better than others

3. stETH failed to restore peg after Terra crisis.

4. The stETH swap volume is much higher and far away from other tokens.

5. Liquidation has a direct impact on the price of ETH derivatives.

6. As stated in the first part of the analysis, the price of some of these derivative tokens is affected by the value of staking rewards that are accumulated on the price of the token, so activities such as swap volume and... cannot be an accurate measure of their price.

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3.Does the swap volume have an effect on the price of Ethereum derivatives?

Swap activity appears to be effectively changing the price of Ethereum derivatives, however, price changes due to swap activity are different for each token.

1.How is the distribution of staking rewards in these platforms and what effect does it have on the price of tokens?

1. Lido Staking : stETH tokens are minted upon ether deposit at 1:1 ratio. When withdrawals from the Beacon chain will be introduced, it will also be possible to redeem ether by burning stETH at the same 1:1 ratio , stETH staking reward awarded to the user through stETH implements rebasing mechanics which means the user stETH balance increases periodically.

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2. Anker Staking : Ankr Staking offers ETH holders the opportunity to stake ETH and claim two different types of ETH2 Liquid Staking tokens:

   1. aETHc is a reward-bearing token, meaning that the fair value of 1 aETHc token vs. ETH increases over time as staking rewards accumulate. When it will be possible to unstake ETH at phase 1.5 of Ethereum 2.0, users will have the option to redeem aETHc to Ankr StakeFi, and unstake ETH with accumulated staking rewards.

   2. aETHb is a reward-earning token, meaning that rewards from Ethereum staking will be distributed daily through rebasing and aETHb holders' balance in their wallet will increase on a daily basis.

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3. Rocket Pool Staking : rETH represents both how much ETH user deposited, and when user deposited it. The value of rETH is determined by the following ratio:

   rETH:ETH ratio = (total ETH staked + Beacon Chain rewards) / (total rETH supply) Since the Beacon Chain rewards will always be positive and will constantly grow, this means that rETH's value effectively always increases relative to ETH

Therefore, according to the mechanisms of each platform:

1. stETH price always tries to be close to ETH
2. The price of rETH is a function of “time” and how much ETH is staked
3. The price of aETHc is a function of “time” and the “total amount of rewards accumulated”.

stETH :

The opposite chart shows the relationship between stETH sell volume and stETH pegging, it can be seen that the increase in Swap volume has led to a decrease in stETH price and caused it to lose its peg.

rETH :

In the case of rETH, it can be seen that the swap volume did not have a major impact on the price, or with some optimism had a small impact to increase the price of rETH.

aETH :

In the case of aETH, it can be seen that the increase in swap volume directly impacted the price increase of aETH.

4.Does the liquidation of derivative positions affect their price?

Yes, it is quite clear that the volume of liquidation of users on platforms like AAVE has a direct impact on the price of stETH and vice versa.

There was a Liquidation on May 12th due to the Terra crisis that caused the price to dpeg, and then another Liquidation on June 12th that pushed the peg to its lowest level.

1.Analysis