LSDfi is on the horizon 🚀
Liquid staking tokens simplify staking and unlock the doors to DeFi participation.
Take a deep dive into the potential use cases of liquid staking 👇🧵
#DeFi #LSDfi
In the Liquid Staking app, users stake PoS native tokens and receive Liquid Staking Tokens (LST) in return.
You can put these LSTs to work in various DeFi apps.
DeFi apps that support liquid staking tokens can be called #LSDfi, which stands for Liquid Staking Derivatives Finance.
This is currently a hot narrative with numerous possible use cases.
💧 Liquidity provision
You can provide liquidity for DEXs using your LSTs. This means earning staking rewards plus fees from pool trades, increasing your returns.
🏦 Collateral
LSTs can also be used as collateral for lending protocols and perpetual exchanges. This means you can earn staking rewards and use leverage for your strategies.
📈 Yield strategies
With LSTs, you can design your own yield strategies. You can distribute LSTs across different pools, use them as collateral, manage staking rewards, and more.
🪙 Stablecoins backed by LST
A decentralized stablecoin can be made using LST instead of a native blockchain token as collateral. This stablecoin generates consistent income through staking.
This is just the tip of the iceberg.
Liquid staking takes efficiency to a new level.