The LSDFi Battle Begins: Five Strategies to Unlock ETH Liquidity

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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 War continues to heat up, detailed explanation of 5 strategies to generate excess returns

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 War continues to heat up, detailed explanation of 5 strategies to generate excess returns

LSDFi has the following main forms:

  1. LP liquidity mining ( yield 10%+)

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.

LSDFi War is heating up, detailing 5 strategies for generating excess returns

  1. Circular lending ( yield 10%+)

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.

LSDFi War continues to heat up, detailed explanation of 5 strategies for generating excess returns

  1. Yield Aggregation (10%+)

Like established DeFi projects such as Yearn Finance, which improve the APY of LSD by aggregating yields from multiple platforms.

LSDFi War continues to heat up, detailed explanation of 5 strategies for generating excess returns

  1. EigenLayer(收益未知)

Allow already staked LSD assets or LSD LP Tokens to be staked again, achieving ultra liquid staking.

LSDFi War continues to heat up, detailed explanation of 5 strategies to generate excess returns

  1. Incentive LSDFi Project

Improve capital efficiency through various derivation strategies, or attract savings with high APY. Such as Pendle, Ion Protocol, unshETH, LSDx Finance, etc.

LSDFi War continues to heat up, detailed explanation of 5 strategies for generating excess returns

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%.

LSDFi War continues to heat up, detailed explanation of 5 strategies for generating excess returns

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MetaNeighborvip
· 16h ago
play people for suckers after harvesting suckers, then trap people to play with them.
View OriginalReply0
BankruptcyArtistvip
· 07-16 09:42
Here we go again, Be Played for Suckers.
View OriginalReply0
DeFiGraylingvip
· 07-14 03:36
I come when the profits are high, if I lose I will block you.
View OriginalReply0
CryptoSourGrapevip
· 07-14 03:24
If I had staked last year, I would have made it... Now I can only watch others do lsd.
View OriginalReply0
LiquidityOraclevip
· 07-14 03:21
The mindless APY war has begun.
View OriginalReply0
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