Over $600M has been locked up for staking in eth2. Problem is, it will potentially be immobile until 2022

Derivative ETH (DETH) to the rescue 👇

The first step to becoming an ETH 2.0 validator requires sending at least 32 ETH to a deposit contract on Ethereum’s PoW chain. The deposit contract is a one-way street and any ETH staked for ETH 2.0 will be locked until ETH's PoW chain is merged with ETH 2 (likely 2022)

While this indefinite lockup was a security conscious decision made by developers, it imposes a high opportunity cost on stakers.

Validators can earn anywhere from 4-23% yield on their staked ETH, but it’s difficult to say whether or not that capital could be put to more productive use elsewhere; particularly if the current market momentum continues.

Recognizing the illiquidity and opportunity costs stakers face, multiple solutions have emerged that will allow stakers to gain liquidity on their staked ETH.

For example, @liquidstake will allow stakers to borrow USDC against ETH staked through their platform.