0xLSD become the new hotbed for LSDFi mining！

The LSD protocols utilize the staked ETH tokens for validating the ETH 2.0 network, thereby ensuring the security of the PoS network.

Singapore - August 24, 2023 /MarketersMEDIA/ —

0xLSD become the new hotbed for LSDFi mining！

The LSD (Liquidity Staking Derivatives) sector has been highly anticipated as a leading force in the new wave of DeFi Summer, and the LSD sector has shown significant growth momentum. Currently, there are over 100 LSD protocols tracked by DeFiLlama, with a TVL (Total Value Locked) in the LSD sector reaching around $18.6 billion, accounting for approximately 50% of the overall DeFi TVL.

LSD (Liquidity Staking Derivatives) has emerged as a critical area for building a secure fortress around Ethereum's PoS ecosystem. Previously, becomng an ETH 2.0 validator required a minimum staking of 32 ETH, and participants needed to run their own node client and maintain continuous online presence to earn staking rewards. Based on the current total staked ETH in the ETH 2.0 network, which stands at 23.5471 million ETH, the annual return rate for staking 32 ETH is only 2.59%. On one hand, the high staking threshold makes it difficult for many ETH holders to participate, and on the other hand, the low return on investment deters potential users. As a result, the early staking rate in the ETH 2.0 network was only around 10%.

The emergence of LSD applications has further lowered the entry barriers for users and increased capital utilization. LSD protocols allow users to stake ETH and other PoS assets in the protocol, even with a minimal amount like 0.1 ETH, and receive LST (LSD Token) tokens in return, which represent an equivalent value of the staked assets. LST tokens can be traded in external markets and hold nearly the same value as ETH. Users can redeem their staked ETH assets at any time using the corresponding LSD protocol's LST tokens. The LSD protocols utilize the staked ETH tokens for validating the ETH 2.0 network, thereby ensuring the security of the PoS network.

With the completion of the Ethereum "Shanghai" upgrade in the first half of this year, a significant influx of ETH that can be redeemed from the ETH 2.0 network has entered the market, further positioning the LSD sector as a promising blue ocean market.

Indeed, during the early stages of LSD development, there are certain challenges to address. On one hand, LSD protocols themselves offer relatively low yield rates, and a few major protocols like Lido have dominated the market, leading to significant centralization and a lack of self-regulation. On the other hand, within the LSDFi sector of the DeFi space, both liquidity support for LST assets and support for DeFi scenarios are still in their early stages, with certain limitations. Consequently, many ETH holders are not enthusiastic about participating in the LSD sector, resulting in an ETH 2.0 staking rate of only 18%. This situation presents both opportunities and challenges.

0xLSD may become the new hotbed for LSDFi mining.

0xLSD has introduced a decentralized liquidity provision protocol that supports multi-chain aggregation, addressing various challenges faced by the LSD sector. This protocol serves as the core component of the 0xLSD ecosystem.

By leveraging AI data analysis and intelligent algorithms, the decentralized liquidity provision protocol enables users to engage in a wide range of derivative trading activities using LSD. Through yield farming aggregation pools, users can earn staking rewards while achieving risk management and stable returns with LSD. 0xLSD provides extensive support for various LST assets and offers liquidity for these assets. Users holding LST assets can automatically generate substantial profits through the AI module. Building upon this foundation, 0xLSD is also providing liquidity to LSD protocols, laying the groundwork for the long-term development of such ecosystems.

The product logic of 0xLSD is relatively simple, eliminating the high barriers associated with native crypto. Additionally, in the future, 0xLSD aims to further simplify user adoption through features like "account abstraction" and "chain abstraction," capturing a wider user base.

In addition to the decentralized liquidity provision protocol, the 0xLSD protocol itself offers various ecosystem components to enhance the quality of its operations. These include on-chain derivative protocols, multi-chain DEX aggregation protocols, an ecosystem wallet, and aggregated public chains. These components work together to create a robust ecosystem for 0xLSD, expanding its capabilities beyond liquidity provision and contributing to the overall operational efficiency.

Expanding product diversity in the LSDFi field

In order to further expand the diversity of the LSDFi ecosystem, 0xLSD is diversifying its product matrix in the LSDFi field. This expansion aims to facilitate LST assets in accessing new DeFi scenarios and enhance 0xLSD's market competitiveness. The LSDFi derivative matrix of 0xLSD includes stablecoin protocols, index protocols, yield strategy protocols, and money market protocols. These additions contribute to a more comprehensive range of products and services offered by 0xLSD in the LSDFi space.

Stablecoin Protocol

The Stablecoin Protocol of 0xLSD refers to using LSD as collateral to provide users with stable value tokens that are pegged to fiat currency or other assets, known as stablecoins. These tokens allow users to enjoy the benefits of collateralized assets while avoiding the risks of market volatility, and they can be used in other DeFi protocols.

The LST asset itself is a derivative asset pegged to ETH. Its main risk lies in the death spiral of the LSD protocol, especially the risk of de-pegging during rapid market fluctuations caused by black swan events. Therefore, the stablecoin protocol plays a crucial role in stabilizing the market.

Index Protocol

The Index Protocol launched by 0xLSD is a mechanism that utilizes smart contracts or other mechanisms to provide users with tokens representing a basket of LSD holdings, known as index tokens. These tokens allow users to diversify and balance their LSD holdings while enjoying the benefits of staking, and they can be used in other DeFi protocols.

The Index Protocol aims to facilitate the adoption of LST assets from different LSD protocols. We have observed low market share and liquidity for LST assets in certain long-tail LSD protocols. By introducing the Index Protocol, we aim to further support the long-term development of the LSD protocol and incentivize more traders to participate.

Yield Strategy Protocol

The Yield Strategy Protocol of 0xLSD refers to the utilization of smart contracts or other algorithms to provide users with opportunities for additional yield, known as yield strategies. This service allows users to optimize and adjust their LSD holdings across different DeFi protocols while enjoying the benefits of staking, thereby potentially earning higher returns. The protocol aims to incentivize user participation in LSD staking and plays a crucial role in promoting an increase in the staking rate within the PoS ecosystem.

Money Market Protocol

The Money Market Protocol refers to the utilization of smart contracts or other platforms to provide users with services for lending and borrowing activities using LSD, known as the money market. This service allows users to leverage and access liquidity using LSD while enjoying the benefits of staking, and it can be used in other DeFi protocols.

In addition to developing innovative LSDFi matrix products, 0xLSD has also introduced an on-chain data high-frequency detection component. This component enables real-time monitoring and analysis of various on-chain data, such as LSD asset price, supply, trading volume, collateralization ratio, borrowing ratio, as well as other relevant data like ETH price, network congestion, gas fees, etc.

About Us: 0xLSD has introduced a decentralized liquidity provision protocol that supports multi-chain aggregation, addressing various challenges faced by the LSD sector. This protocol serves as the core component of the 0xLSD ecosystem.

Contact Info:
Name: 0xLSD
Email: Send Email
Organization: 0xLSD
Website: https://twitter.com/0xLSD_Official

Release ID: 89105628

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