Evan Weiss, COO at Alluvial, on Liquid Staking, the ETH ETF, and the Future of DeFi and Staking | Ep. 357
In a recent episode of the Cryptonews Podcast, Evan Weiss, COO of Alluvial and a key figure in Liquid Collective, delved deep into the evolving landscape of liquid staking, the introduction of the ETH ETF, and the future trajectory of decentralized finance (DeFi) and staking. The discussion offered a comprehensive overview of how these innovations are reshaping the DeFi ecosystem and what they mean for the broader financial landscape.
Liquid Staking: A Game Changer in DeFi
Evan Weiss emphasized the transformative potential of liquid staking within the DeFi space. Liquid staking enables users to stake their ETH while retaining liquidity through derivative tokens, a feature that significantly enhances capital efficiency. These derivative tokens can be utilized across various DeFi protocols, offering flexibility and additional earning opportunities.
Weiss pointed out that liquid staking removes one of the primary barriers to entry in the staking ecosystem—asset lock-up. By providing a method to stake assets without immobilizing them, liquid staking encourages greater participation from both retail and institutional investors.
“If you stake and your assets are locked up, you’re about 93% less likely to stake. Whereas if you have liquidity, now I don’t need to think about when I need to sell,” Weiss explained.
Platforms like Liquid Collective are at the forefront of this innovation, building robust infrastructure to facilitate liquid staking. Weiss highlighted that these platforms are integrating with large enterprises, including crypto exchanges and asset managers, to bring scalable and liquid products to end users. As of February 27, 2024, Liquid Collective had 65,639 staked ETH, $211.88 million in Total Value Locked (TVL), 2,050 active validators, and an exchange rate of 1 LsETH to 1.0410 ETH【8†source】【9†source】.
A Step Further in the Staking Paradigm: Restaking
Restaking, introduced by protocols like EigenLayer, represents a significant evolution in the staking paradigm. This concept allows the security of staked ETH to be leveraged across multiple protocols, enhancing yield potential without requiring separate validator networks. Restaking maximizes the utility of staked assets by enabling them to secure additional protocols, thus multiplying rewards for stakers.
Weiss discussed the higher yields achievable through restaking, noting that it benefits both individual stakers and the broader Ethereum ecosystem by bolstering security and network efficiency.
“The nice thing with restaking is now if you have ETH, I can restake my ETH and earn nice staking rewards, but also additional rewards from different ABSs,” he said.
For restaking to gain widespread adoption, trust and security are paramount. Weiss emphasized that robust security measures and compliance with large enterprise standards are essential to encourage mainstream participation in DeFi【8†source】【9†source】.
Institutional Adoption of DeFi and Regulatory Certainty
Weiss also touched on the growing interest from institutional players in the DeFi space, driven by developments such as ETH ETFs and evolving regulatory frameworks in the U.S. He suggested that regulatory clarity is critical for traditional financial institutions to confidently enter the crypto space.
“I expect that crypto is becoming more of a bipartisan political issue, and with that, we’ll have regulatory certainty coming through Congress or changes at the SEC,” Weiss stated. He anticipates substantial capital inflows from institutional investors once regulatory frameworks are established, restoring legitimacy and stability to the DeFi ecosystem【8†source】【9†source】.
How to Improve Mainstream Adoption of DeFi
According to Weiss, improving user experience is vital for the mainstream adoption of DeFi. Innovations like Coinbase’s smart contract wallet, which simplifies interactions with DeFi protocols, are key to this improvement.
“Normal people, like my parents and friends, need to be able to click a button and stake easily. That’s what we’ll start to see with restaking as centralized players make it super easy,” Weiss explained.
He envisions a future where interacting with DeFi platforms is as intuitive as traditional online banking, which will require ongoing efforts to streamline interfaces, improve security, and educate users about the benefits and risks of DeFi【8†source】【9†source】.
Other Key Takeaways from the Podcast
- **Ethereum at the center of staking and its impact:** Weiss emphasized Ethereum's pivotal role in the staking ecosystem and its broader impact on the DeFi space.
- **Achieving decentralization in staking:** Decentralization remains a core objective, with efforts aimed at reducing reliance on centralized validators.
- **Blockchain interoperability benefits:** Interoperability between blockchains enhances the utility and efficiency of DeFi protocols.
- **Managing staking risks:** Effective risk management strategies are essential to mitigate potential vulnerabilities in staking processes.
- **Enhancing smart contract security through staking:** Leveraging staking to enhance smart contract security is a critical area of focus.
- **DeFi’s role in financial inclusion:** DeFi holds the potential to democratize access to financial services, promoting greater financial inclusion【8†source】【9†source】.
For more detailed insights, you can watch the full podcast episode [here](https://poddtoppen.se/podcast/1559291408/cryptonews-podcast/357-evan-weiss-coo-at-alluvial-on-liquid-staking-the-eth-etf-and-the-future-of-defi-staking)【9†source】.
__________
About Evan Weiss
Evan Weiss, Chief Operating Officer at Alluvial, has extensive experience in the crypto industry. Before joining Alluvial, he was the Business Development Lead for Coinbase Cloud at Coinbase, where he played a crucial role in launching Coinbase’s Wallet-as-a-Service. He also served as the Head of Business Operations at Bison Trails, overseeing significant growth and managing teams responsible for sales, business operations, and customer success. Under his leadership, these teams built the industry’s largest staking provider, managing over $30 billion in assets by November 2021.
Weiss is the founder of the Proof of Stake Alliance (POSA), a nonprofit organization established in 2019 to advocate for forward-thinking public policies in the proof-of-stake ecosystems. His work with POSA includes contributions to legal frameworks for staking, industry principles for staking-as-a-service, and fair taxation of staking rewards, particularly in the context of liquid staking in the United States【8†source】【9†source】.
The post originally appeared on [Cryptonews](https://cryptonews.com/news/evan-weiss-coo-at-alluvial-on-liquid-staking-the-eth-etf-and-the-future-of-defi-and-staking-ep-357.htm)【8†source】【9†source】.
In a recent episode of the Cryptonews Podcast, Evan Weiss, COO of Alluvial and a key figure in Liquid Collective, delved deep into the evolving landscape of liquid staking, the introduction of the ETH ETF, and the future trajectory of decentralized finance (DeFi) and staking. The discussion offered a comprehensive overview of how these innovations are reshaping the DeFi ecosystem and what they mean for the broader financial landscape.
Liquid Staking: A Game Changer in DeFi
Evan Weiss emphasized the transformative potential of liquid staking within the DeFi space. Liquid staking enables users to stake their ETH while retaining liquidity through derivative tokens, a feature that significantly enhances capital efficiency. These derivative tokens can be utilized across various DeFi protocols, offering flexibility and additional earning opportunities.
Weiss pointed out that liquid staking removes one of the primary barriers to entry in the staking ecosystem—asset lock-up. By providing a method to stake assets without immobilizing them, liquid staking encourages greater participation from both retail and institutional investors.
“If you stake and your assets are locked up, you’re about 93% less likely to stake. Whereas if you have liquidity, now I don’t need to think about when I need to sell,” Weiss explained.
Platforms like Liquid Collective are at the forefront of this innovation, building robust infrastructure to facilitate liquid staking. Weiss highlighted that these platforms are integrating with large enterprises, including crypto exchanges and asset managers, to bring scalable and liquid products to end users. As of February 27, 2024, Liquid Collective had 65,639 staked ETH, $211.88 million in Total Value Locked (TVL), 2,050 active validators, and an exchange rate of 1 LsETH to 1.0410 ETH【8†source】【9†source】.
A Step Further in the Staking Paradigm: Restaking
Restaking, introduced by protocols like EigenLayer, represents a significant evolution in the staking paradigm. This concept allows the security of staked ETH to be leveraged across multiple protocols, enhancing yield potential without requiring separate validator networks. Restaking maximizes the utility of staked assets by enabling them to secure additional protocols, thus multiplying rewards for stakers.
Weiss discussed the higher yields achievable through restaking, noting that it benefits both individual stakers and the broader Ethereum ecosystem by bolstering security and network efficiency.
“The nice thing with restaking is now if you have ETH, I can restake my ETH and earn nice staking rewards, but also additional rewards from different ABSs,” he said.
For restaking to gain widespread adoption, trust and security are paramount. Weiss emphasized that robust security measures and compliance with large enterprise standards are essential to encourage mainstream participation in DeFi【8†source】【9†source】.
Institutional Adoption of DeFi and Regulatory Certainty
Weiss also touched on the growing interest from institutional players in the DeFi space, driven by developments such as ETH ETFs and evolving regulatory frameworks in the U.S. He suggested that regulatory clarity is critical for traditional financial institutions to confidently enter the crypto space.
“I expect that crypto is becoming more of a bipartisan political issue, and with that, we’ll have regulatory certainty coming through Congress or changes at the SEC,” Weiss stated. He anticipates substantial capital inflows from institutional investors once regulatory frameworks are established, restoring legitimacy and stability to the DeFi ecosystem【8†source】【9†source】.
How to Improve Mainstream Adoption of DeFi
According to Weiss, improving user experience is vital for the mainstream adoption of DeFi. Innovations like Coinbase’s smart contract wallet, which simplifies interactions with DeFi protocols, are key to this improvement.
“Normal people, like my parents and friends, need to be able to click a button and stake easily. That’s what we’ll start to see with restaking as centralized players make it super easy,” Weiss explained.
He envisions a future where interacting with DeFi platforms is as intuitive as traditional online banking, which will require ongoing efforts to streamline interfaces, improve security, and educate users about the benefits and risks of DeFi【8†source】【9†source】.
Other Key Takeaways from the Podcast
- **Ethereum at the center of staking and its impact:** Weiss emphasized Ethereum's pivotal role in the staking ecosystem and its broader impact on the DeFi space.
- **Achieving decentralization in staking:** Decentralization remains a core objective, with efforts aimed at reducing reliance on centralized validators.
- **Blockchain interoperability benefits:** Interoperability between blockchains enhances the utility and efficiency of DeFi protocols.
- **Managing staking risks:** Effective risk management strategies are essential to mitigate potential vulnerabilities in staking processes.
- **Enhancing smart contract security through staking:** Leveraging staking to enhance smart contract security is a critical area of focus.
- **DeFi’s role in financial inclusion:** DeFi holds the potential to democratize access to financial services, promoting greater financial inclusion【8†source】【9†source】.
For more detailed insights, you can watch the full podcast episode [here](https://poddtoppen.se/podcast/1559291408/cryptonews-podcast/357-evan-weiss-coo-at-alluvial-on-liquid-staking-the-eth-etf-and-the-future-of-defi-staking)【9†source】.
__________
About Evan Weiss
Evan Weiss, Chief Operating Officer at Alluvial, has extensive experience in the crypto industry. Before joining Alluvial, he was the Business Development Lead for Coinbase Cloud at Coinbase, where he played a crucial role in launching Coinbase’s Wallet-as-a-Service. He also served as the Head of Business Operations at Bison Trails, overseeing significant growth and managing teams responsible for sales, business operations, and customer success. Under his leadership, these teams built the industry’s largest staking provider, managing over $30 billion in assets by November 2021.
Weiss is the founder of the Proof of Stake Alliance (POSA), a nonprofit organization established in 2019 to advocate for forward-thinking public policies in the proof-of-stake ecosystems. His work with POSA includes contributions to legal frameworks for staking, industry principles for staking-as-a-service, and fair taxation of staking rewards, particularly in the context of liquid staking in the United States【8†source】【9†source】.
The post originally appeared on [Cryptonews](https://cryptonews.com/news/evan-weiss-coo-at-alluvial-on-liquid-staking-the-eth-etf-and-the-future-of-defi-and-staking-ep-357.htm)【8†source】【9†source】.