Try Quests to earn cryptostETH vs ETH
Q2. How has the price of stETH compared to ETH? Are there any events that triggered a big difference in price between the two tokens?
Introduction
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. stETH token’s balances are updated when the oracle reports change in total stake every day.
stETH tokens can be used as one would use ether, allowing you to earn ETH 2.0 staking rewards whilst benefiting from e.g. yields across decentralised finance products.
Method
Determine if stETH deviates from its 1:1 peg with ETH.
I opted to focus on flipside prod db.ethereum.erc20 balances where we can look for the USD price of the various tokens in a wallet. If we filter by contract address for ETH and 0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84 for'stETH,' this gives me the daily price for each token and I believe it's (daily basis comparison). I plotted from June 1, 2021 to avoid overtaxing the query calculation.
I added a case to assign the label stETH instead of the address, concatenated my two CTEs, and calculated the price deviation in percentage: (ETHprice/stETHprice - 1)*100 as priceVariation. This helped me build more intelligible and visual graphs.
Observation
The above depicts the price of ETH and stETH on a daily basis in two limes. I used the Y axis (left) in log scale to show a clear difference between two tones in this chart. Because of the similarity in shape between those two lines, we need to examine them more closely in order to discern the pricing discrepancy between them, even if they're supposed to be linked at 1:1. As a result, I've included a following chart that displays the percent change in pricing and divergence of them.
Conclusion
It is possible to obtain a better notion of what the average price difference between the two is by looking at it over a longer period of time. On the basis of the color, the variances in prices, and the percentage change in pricing, it is simple to identify. On August 6th, 2021, the price of ETH was 3.57 percent lower than the price of stETH (and there was a large variance for the entire month of August); nevertheless, on June 8th, 2022, the price of ETH was 4.38 percent higher than the price of stETH. The price of ETH measured in US dollars is represented as points in this graph, and the color indicates the percentage of that value.