Woke up earlier this week to my wstETH/ETH LP being completely wrecked. My first thought: 'what did I screw up now?' Turns out the whole market is spasming, and the person who pulled the fire alarm is His Excellency @justinsuntron. A thread on the great stETH depeg: 🧵

2/4 Here's the quick & dirty: For years, degens created leveraged yield by 'looping' stETH. This whole game works because stETH is supposed to be worth 1 ETH. The hidden catch? Redeeming stETH for real ETH isn't instant; there's an "exit queue."

3/4 Justin Sun clogged that queue by cashing out his massive ~450k ETH position, blowing the wait time to 9+ days & causing the depeg. Now, every other looper is royally screwed. Their money printer has become a cash furnace as ETH borrow rates have skyrocketed.