🎉 [Gate 30 Million Milestone] Share Your Gate Moment & Win Exclusive Gifts!
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Remember the thrill of opening your first account, or the Gate merch that’s been part of your daily life?
📸 Join the #MyGateMoment# campaign!
Share your story on Gate Square, and embrace the next 30 million together!
✅ How to Participate:
1️⃣ Post a photo or video with Gate elements
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The LSDFi Battle Begins: Five Strategies to Unlock ETH Liquidity
LSDFi is a DeFi product based on liquid staking derivation (LSD). Through LSD, stakers can convert their staked ETH into tradable assets, thus unlocking liquidity. LSD also drops the threshold for staking ETH, allowing any amount to be staked, and upon staking, they receive LSD while also benefiting from multiple returns brought by LSD.
LSDFi is backed by the composability of DeFi. New projects will attract users to stake ETH/LSD on their platform through token incentives and other means to gain market share and control over LSD. Some projects leverage dynamic yields to encourage users to choose smaller decentralized staking platforms to enhance the decentralization of validators.
LSDFi has the following main forms:
Providing liquidity for LSD-ETH on some DeFi platforms can earn staking rewards, LP fees, and token subsidies. After the Shanghai upgrade, the LP scale may further increase.
By cyclically staking LSD and lending ETH on lending platforms to obtain leveraged returns. The liquidation risk is relatively high, and the returns depend on the number of cycles.
Like established DeFi projects such as Yearn Finance, which improve the APY of LSD by aggregating yields from multiple platforms.
Allow already staked LSD assets or LSD LP Tokens to be staked again, achieving ultra liquid staking.
Improve capital efficiency through various derivation strategies, or attract savings with high APY. Such as Pendle, Ion Protocol, unshETH, LSDx Finance, etc.
In general, the LSDFi project is competing for LSD market share, which will affect its future collaboration space. High yields may persist for a while, but they also bring sustainability issues. There are cooperation opportunities among different projects, and products with various yield tiers may emerge in the future. The battle for LSD has begun and may continue until the Ethereum staking rate stabilizes above 25%.