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A lot of you must have been seeing threads on LSDFi
And not know how to get into it
In this thread, I will cover the key aspects of this narrative
Tagging LSD OGs to this β€οΈ
@crypto_linn
@rektdiomedes
@CryptoShiro_
@CryptoKoryo
@0xSMP
@Slappjakke
@DeFiMinty
@Louround_
@arndxt_xo
@AlanNguyen2909
@Moomsxxx
@poopmandefi
@crypticdegen22
@splinter0n
@defi_mochi
@2lambro
@0xsurferboy
@_FabianHD
@crypthoem
@Subli_Defi⦠twitter.com/i/web/status/1702996517227835589
β‘ What is LSD?
β‘οΈ Brief History of LSDFi
β‘οΈ Advantages and Risks
β‘οΈ Projects to watch
β‘οΈ Conclusion
β‘ What is LSD?
LSDFi- Liquid Staking Derivatives
Theyβre tokenized representation of staked assets in a blockchain network which can be traded or used in Defi Protocols
Staking is a process of locking tokens or assets in a particular blockchain as a collateral to secure the network and earn rewards.
During this process, the tokens remain locked but with LSDFi, this token can be made productive while still locked
β‘οΈ Brief History of LSDFi
In 2023, the crypto market experienced a huge narrative following the popularity of LSDs and this lead to the rise of LSDFi(Liquid Staking Derivatives Finance) which combines LSD and Defi and have since then, seen a rapid increase in its TVL
Theyβre built on top of Liquid Staking Derivatives and allows it holders put their assets to work and maximize profit of their tokens
The most common LSDFi are those built on the Ethereum blockchain
Although there are other LSDFi on other chains such as Polygon, Coinbase
β‘οΈ Advantages and Risks
There are several advantages of adopting the LSD and LSDFi narrative such as:
β Additional Yield Generating Opportunities
β Increased rewards
β Users can stake any amount of ETH instead of the previous 32ETH minimum staking
Generally, the major benefit of LSDs is the increase in rewards it provide for holders
While there are benefits attached to this,there are also risks associated with it
β Smart contracts risk
β Third-party invasion
β Slashing risks
β Prove fluctuation
β‘οΈ Projects to watch
Alongside the rise of LSDFi, we have seen various projects done well under this narrative. Some of them are
β Lybra Finance @LybraFinance
β Lucid Finance @LucidFinance
β Insta Dapp @Instadapp
β Curve Finance @CurveFinance
β Origin Defi @OriginDeFi
β Maverick @Maverick
β Rocketswap @RocketSwap_Labs
β Hydro Protocol @hydro_fi
β Assymetrix @assymetrix
β Gravita Protocol @gravitaprotocol
β‘οΈ Conclusion
LSDs and LSDFi are taking over traditional staking
To be a part of this, make sure to follow me @MichaelSixgods as I Will dropping weekly updates on this
#LSDFiSummer