From Treasury to Liquidity Platform: Analyzing StakeStone's Full-Chain Liquidity Solution

The arrival of the multi-chain era has brought new opportunities as well as new challenges. With the advancement of the modularization wave, from the multi-chain concept of Cosmos and Polkadot to the prosperity of the Ethereum L2 ecosystem, and the emergence of various application chains, the blockchain ecosystem is experiencing an unprecedented diversification. However, this diversity has also raised a tricky issue – the extreme fragmentation of Liquidity.

According to statistics from data platforms, there are hundreds of Ethereum L2s. This diversity brings more possibilities to the on-chain ecosystem, but it also leads to severe fragmentation of liquidity. Starting in 2024, liquidity will not only be dispersed on Ethereum and L2s but will also be severely isolated within the exclusive ecosystems of emerging public chains and application chains. This fragmentation phenomenon not only increases the complexity of user operations but also greatly limits the further development of DeFi and on-chain applications.

For Ethereum and L2, liquidity cannot flow freely, reducing capital efficiency and limiting the potential of on-chain ecosystems. For emerging public chains, this means that the migration costs and entry barriers are high, making it more difficult to establish a liquidity ecosystem from scratch, thus hindering the expansion of the ecosystem. In short, the "entropy increase" trend in the multi-chain era has become the biggest obstacle to multi-chain prosperity.

In this context, both users and developers are eager for funds to flow efficiently in on-chain protocols like DEX and lending across any network, breaking down barriers between networks and enhancing the user experience. Especially in the emerging public chain ecosystems outside of the Ethereum ecosystem, the yield opportunities in these new ecosystems often have high attractiveness, and users need to be able to easily migrate their assets from Ethereum or other chains into these new ecosystems to participate in their DeFi protocols, liquidity mining, or other yield opportunities.

For users, liquidity is always key, regardless of how it is combined. Therefore, if Ethereum and the multi-chain ecosystem are to continue to scale and thrive, there is an urgent need to efficiently integrate the liquidity resources scattered across multiple chains and platforms. This requires the establishment of a unified technical framework and standards to combat "entropy increase" and bring broader applicability, liquidity, and scalability to the multi-chain ecosystem.

This "unified" demand and vision provide development space for full-chain liquidity infrastructures like StakeStone LiquidityPad. As an innovative full-chain liquidity vault product issuance platform, StakeStone LiquidityPad aims to help emerging public chains and application chains efficiently integrate cross-chain liquidity resources by providing customized liquidity fundraising solutions, breaking liquidity islands, and promoting the efficient circulation of capital.

As of now, StakeStone LiquidityPad has locked in over $540 million in funds, with more than 120,000 unique on-chain addresses participating. This data not only proves the market's recognition of the platform but also reflects the strong demand from users for a comprehensive on-chain liquidity solution.

StakeStone has aimed at the full-chain Liquidity infrastructure from the very beginning, gradually building the prototype of its Liquidity network through the launch of vault products in collaboration with various emerging public chains. Whether it's the pre-deposit vault launched in collaboration with Plume or the StakeStone vault launched in collaboration with Berachain, these are StakeStone's pioneering attempts in different ecological scenarios, which not only provide much-needed Liquidity support to emerging public chain ecosystems but also lay the foundation for the construction of StakeStone's full-chain Liquidity infrastructure.

StakeStone LiquidityPad is a more comprehensive, flexible, and customizable full-chain liquidity fundraising and management platform, marking StakeStone's transition from "peer-to-peer" liquidity solutions to a "peer-to-pool" liquidity network. As a full-chain liquidity infrastructure, StakeStone is committed to connecting liquidity assets on the Ethereum mainnet with the liquidity demands of emerging public chains and L2 ecosystems.

StakeStone LiquidityPad provides customized solutions for projects at different stages:

1. For projects that have not yet launched on the mainnet, StakeStone LiquidityPad supports raising the liquidity required for early cold starts by publishing a pre-deposit treasury on the Ethereum mainnet. These funds can be used for liquidity provision in DeFi protocols, liquidity support for RWA protocols, and investment in RWA assets.

2. For projects that have launched on the mainnet, StakeStone LiquidityPad supports customizing vaults for specific liquidity yield scenarios to help the project ecosystem achieve rapid growth. This includes providing liquidity support for DeFi protocols and offering customized liquidity solutions for special yield scenarios.

The core value of StakeStone LiquidityPad lies not only in solving the liquidity isolation problem of emerging public chains and application chains but also in forming a "full-chain liquidity flywheel" that integrates multiple asset yields and liquidity re-release through its unique mechanism design.

After users deposit assets through StakeStone LiquidityPad, they will receive LP Tokens. These LP Tokens are not only a certificate of rights for users in the emerging public chain ecosystem but also the key to unlocking multiple earnings. The assets deposited by users will directly participate in liquidity mining rewards, governance token airdrops, etc., in the emerging public chain ecosystem, while StakeStone's automated strategies help users efficiently capture these local earnings.

In addition, LP Token has a high degree of financial composability, allowing users to seamlessly access DeFi financial facilities on Ethereum, further unlocking liquidity potential. For example, users can provide liquidity or trade on DEX, use lending platforms for collateralized borrowing, or sell yields through yield protocols.

This mechanism not only allows a user's asset to be reused across multiple ecosystems to maximize returns, but also significantly lowers the participation threshold for emerging ecosystems, enabling more users to efficiently participate in the local yield capture of the emerging public chain ecosystem.

With the upgrade of StakeStone LiquidityPad, it can better connect emerging ecosystems in the cold start phase with mature ecosystems across different yield scenarios. On one hand, it assists emerging public chains in raising cold start funds on the Ethereum mainnet, obtaining the "from 0 to 1" Liquidity support needed for early development; on the other hand, after growing with the help of resources, the excess returns from the emerging public chains will be brought back to the Ethereum mainnet, where financial services are mature, to achieve a complete cycle of resources.

In the future, with the accelerated expansion of the multi-chain ecosystem, StakeStone LiquidityPad is expected to become a core hub connecting emerging public chains with mature markets, providing users and protocol parties with more efficient and fair liquidity solutions. From the liquidity dilemma of "entropy increase" to the ecological prosperity driven by "flywheel effect", it redefines the liquidity infrastructure of Web3. This is not only an inevitable path for StakeStone to further improve the overall liquidity issue across chains, but also the optimal solution to promote the maturity of the multi-chain ecosystem.