Larger liquid staking protocols like Lido can absorb thinner margins because they benefit from massive scale and deep liquidity. At the time EIP-8363 was proposed, Ethereum’s staking ratio sat at approximately 34%, with around 41.5 million ETH staked. Liquid staking tokens collectively held about 15 million ETH. AdvertisementOn August 7, Silagadze made his position public, stating that while ether.fi would not refuse the upgrade, EIP-8363 could cause small liquid staking tokens to exit and migrate capital to Lido. Why yield compression hits small operators hardestTo understand the mechanics here, consider how liquid staking protocols compete.