The #LSDFi eco is evolving rapidly, making it hard to keep track of everything
Someone made a #LSDFi Map to help!
It's a comprehensive overview of the Layerized #LSD eco, so you can stay up-to-date on all the latest developments
Here what I found interesting 🧵👇
$LBR #LST
1⃣ The #LSDFi Layers
🔹L0: They're strengthening infrastructure using #DVT tech
🔹L1: You can secure #LST by staking your #ETH
🔹L2: New products are being developed based on the LST from L1
🔹L3: They’re creating product indexes & protocols based on these L2 product designs
2⃣ A Few Thoughts on LSD Layers structure
🔹L0 is technically challenging, but the token's utility shouldn't be overlooked
🔹New leaders emerge in L1 & barring any internal or systemic risks, I’m not expecting any new TOP3 to arrive soon
🔹L2 isn't fortified & will constantly be put to the test. But, the more basic DeFi projects we have, the more L2 will thrive
🔹L3's growth is dependent on L2's progress & there's tons of potential here, but it needs time to evolve
3⃣ L0: infrastructure using #DVT tech
🔹This layer is the underlying layer, tech rich & hard for indivisual to approach
▪️ @ssv_network
$SSV
▪️ @ObolNetwork
▪️ @divastaking
▪️ @SafeStakeDVT
4⃣ L1: #LST protocols
🔹L1 is the base infrastructure called commission model of every scaling layer, you stake your #ETH to earn income
▪️ @LidoFinance
▪️ @Rocket_Pool
▪️ @fraxfinance
▪️ @ankr
▪️ @swellnetworkio
▪️ @stakewise_io
▪️ @ether_fi
▪️ @Node_DAO
▪️ @rockx_official
▪️ @BifrostFinance
▪️ @staderlabs
▪️ @Prism_Protocol
▪️ @GuardaWallet
▪️ @HordApp
▪️ @pStakeFinance
▪️ @liquid_col
▪️ @puffer_finance
🔹Yields & Income Sources
▪️ General income for LSD projects excluding POS comes from multiple sources such as:
• Token incentives- protocols’ tokens or subsidies from other tokens
• Borrowing fees- mainly from stable currencies
• LP liquidity pool fees
• Derivative hedging
• Eigenlayer fees charged to service providers to subsidize pledge nodes
• Transaction fees or commissions.
▪️ In my view, robust projects ideally mix real income, application scenarios & solid tokenomics
5⃣ Protocols developed based on the LST from L1
🔹Fixed-income products based on #LST, Stablecoin, income aggregation, etc.
▪️ @pendle_fi
▪️ @eigenlayer
▪️ @raft_fi
▪️ @unsheth_xyz
▪️ @ionprotocol
▪️ @OriginDeFi
▪️ @AlchemixFi
▪️ @gravitaprotocol
▪️ @asymetrix_eth
▪️ @TapioFinance
▪️ @mavprotocol
▪️ @PrismaFl
▪️ @parallaxfin
▪️ @Davos_Protocol
▪️ @0xAcidDAO
▪️ @taimoney6
▪️ @agility_lsd
▪️ @LSDxfinance
▪️ @ZeroLiquid_xyz
▪️ @Dank_Protocol
▪️ @Flashstake
▪️ @ETHPlus_
▪️ @AlacrityLSD
▪️ @CIAN_protocol
▪️ @shield_dao
▪️ @catinaboxfi
▪️ @PSY_Stablecoin
▪️ @0xLSDoge
6⃣ Product indexes & protocols based on L2
🔹Using #veToken to trigger gorvenment competition
▪️ @StakeDAOHQ
▪️ @Equilibriafi
▪️ @Penpiexyz_io
▪️ @gusher_xyz
▪️ @0xAcidTrip
7⃣ Elements to Acknowledge
🔹Security: Care must be taken with team personnel & internal management, auditing & fund custody
🔹Yield Rate: It can be high or low, long-lasting & have diversely categorized incomes
🔹Extent of Decentralization: It involves custody methods, DVT technology, among others
🔹Token economics: Ensure substantial utility & maintain demand-supply balance
🔹User Interface: It should be clean & concise, considering user threshold
🔹Ease of use: Clarity in a product's purpose is essential
Tanaka
@Tanaka_L2
Contributor at @hashflow | Ambassador: @ton_blockchain , @Mantle_Official, @arbitrum Founder of @Kollab3dotcom TG: t.me/Tanaka_L2