The EIP That Destroys DeFi | Stani Kulechov & Mike Silagadze

What you'll learn

• 1 (00:25) **EIP Introduced: Stake Targeting / ETH Issuance Debate** - The episode opens by framing the new EIP, which aims to constrain ETH staking because there’s no cap on the incentive to stake more, with the worry that vanilla ETH will be replaced by staked derivatives and that Ethereum is overpaying for security.
• 2 (02:47) **Stani’s First Reaction: Legitimate Question, Wrong Solution** - Stani acknowledges the question of overpaying for security is legitimate, but argues the real objective is to boost ETH price, and the proposal’s consequences are negative.
• 3 (07:56) **Mike’s First Reaction: Frustrating on Every Level** - Mike calls the proposal frustrating, noting it was rushed in last-minute and hurts solo stakers (who have the highest cost basis) by pushing yields below breakeven.
• 4 (14:43) **The Core Question: What Would Happen to DeFi?** - The hosts dive into the second/third/fourth order consequences of zero yield as staking approaches 50%.
• 5 (17:19) **Stani Elaborates: Removing Productivity Turns ETH into a Funding Leg** - Stani explains that without the yield component, ETH holders will move to stablecoin yields, and ETH becomes a cheap asset to borrow and sell for more productive assets.
• 6 (24:57) **The “Noble But Naive” Argument for Preserving Vanilla ETH** - The host, David, plays devil’s advocate, praising the idea of preserving vanilla ETH so users don’t have to use intermediaries (LSTs), which is very self-sovereign and Bitcoin-like.
• 7 (27:25) **Mike’s Counter: Sophisticated Economies Need Derivatives** - Mike pushes back hard, saying the “only true ETH is raw ETH” mindset is a Bitcoin brainworm that doesn’t understand real economies.

+ Full timestamped outline available in the app