💊2. Cross-chain LSDfi
LSDFi's should interact with each other
Introduction
LSDfi protocols have seen a swift surge in Total Value Locked (TVL) over recent months, primarily due to the widespread embrace of liquid staking. As this trend gained momentum, the combined TVL across leading LSDfi protocols has surpassed the milestone of $400 million, more than twofold what it was just a month ago.
As LSD grows so does the "category" of applications.
Now we see not only DEX or aggregators but also stablecoins, derivatives and also active development in lending and borrowing.
This is a huge plus for the ecosystem as users and participants can actively contribute to the network security and at the same time become active users to it.
This is now an ecosystem-level layer where we believe every Layer 1 or 2 that has a native asset will need to do.
So why are we implementing LSDFi?
First of all, it combines the benefits of liquidity provision and staking mechanisms, offering a solution that enhances user participation, security, and overall functionality.
But to be more specific, we observed that LSD and LSDfi is the best starting catalyst for any ecosystem to grow
Our target is to attract LSDs from one chain and afterwards bridge the ecosystems together.
Imagine where you can swap LSDs in other ecosystems seamlessly.
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