Lido note explains how ETP liquidity buffers lower Ethereum staking yields

Community Trust Score Verified 97 % Real Verified 29 votes Updated 6 minutes ago Lido published an institutional note on October 23 comparing European exchange-traded products (ETPs) for Ethereum, arguing that liquidity buffers and staking allocation significantly affect the yield investors receive. The note highlights that products holding an unstaked liquidity buffer may earn rewards on less than their full ETH exposure, promoting liquid staking as an alternative to traditional unstaked buffers. In the note, Lido presents an illustrative scenario involving a product holding 100 ETH.

Source: The Currency Analytics