stETH to ETH ratio is now trading at 0.95 ETH. According to Lido, 1 stETH is always 1 ETH redeemable after the proof of stake merge.
Lot people use stETH to do leverage borrowing - is another Terra incident coming or is this different?
stETH is an IOU. If people are not significantly incentivized to hold stETH, then the liquidity pool will be drained of Ethereum. For me, Ethereum staking is unsafe and convoluted and I prefer ICP staking, which has a much higher APY anyway. NEAR protocol is also a good alternative for staking.