I’m really eager to see new LSTs in Aave, contributing to decentralize the staking landscape. However, I’m somewhat concerned about listing sfrxETH.
TVL may have grown since the last forum post, but have all the trust assumptions and centralization risks, highlighted by @monet-supply and @WintermuteGovernance here, been solved?
AFAIK they have not, as the v2 update has been constantly pushed back, and there’s no precise timeline for it.
Needless to mention the huge third-party risk Curve poses to sfrxETH and frxETH (as well as the entire Frax ecosystem). If any disaster were to happen to Curve and that frxETH/sfrxETH pool, Aave would rapidly notice its exposure to sfrxETH, which liquidity is also completely centralized.