DeFi bull market engine: How LSD leads an epic bull market
Original compilation: Block unicorn
Original compilation: Block unicorn
LSD will be the catalyst for the DeFi ecosystem. By rationally utilizing the capital efficiency of LSD, the asset leverage of ETH can be leveraged. These released liquidity leverage will greatly increase the asset value and TVL on the chain, bringing the second DeFi Summer.
LSD is a new narrative in the encryption field. This is a potential opportunity to earn huge profits. Remember the last DeFi Summer, early participants easily earned more than millions of dollars in assets, now in LSD, the same opportunity comes , but most people don't realize it yet.
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Prologue
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Ethereum’s pledged volume exceeds $15 billion, data from defillama
As of now, the collateralization ratio of Ethereum is only 14.87%, which is very low compared with Cardano's 64.98%, Solana's 72.5% and Avalanche's 61.04%, because the pledged ETH assets cannot be withdrawn before the Shanghai upgrade. return, that is to say, this part of assets will always be locked. After the upgrade in Shanghai, the last hurdle of ETH pledge extraction has been cleared, and the barriers to ETH POS pledge entry will be cleared. More ETH shares will enter the POS node pledge, providing more secure node verification for Ethereum, and also Freeing up more LSD shares to enter the crypto market.
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Why LSD Is a Bull Catalyst The LSD Potential Market Is Huge
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The Crypto Market Needs LSD as the New Narrative
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The prosperity of the encryption market is driven by levers
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LSD is a niche asset in the crypto market
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LSD leads DeFi 3.0 sustainable income building block
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The basic components of circular matryoshka
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carrier of capital gains
The rate of return of the market in a bull market is significantly higher than that in a bear market, but the instability of this investment rate of return makes it difficult for investors with long-term liabilities to invest in lower-risk "bond-like" opportunities. low-risk targets.
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How to find opportunities protocol layer and entrepreneurs in this wave of LSD Summer
1. For the agreement, LSD assets can be integrated into the agreement, and incentives can be used to guide the scale of LSD assets and occupy market share.
2. For entrepreneurs, build a doll protocol for LSD assets to maximize the leverage of LSD assets and further improve the capital efficiency of LSD.
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for users
1. Participate in POS pledge, earn stable income from Ethereum pledge, release asset leverage through LSD certificate, and obtain more income.
2. Discover and participate in new LSD-based DeFi protocols and earn early Alpha returns.
3. Pay attention to the innovation of LSD ecology, there will be more innovative projects using LSD as the underlying asset.
Some innovative projects on LSD (not investment advice):
Unlock LSD Capital Efficiency: Dank Protocol;
Driving adoption of LSD assets: EigenLayer, Lybra;
Index products: Index Coop;
Promote the decentralization of LSD pledge: unshETH;
As the basic building block of DeFi 3.0, SD can greatly release the asset efficiency of pledged Ethereum through flexible composability, and can bring new narratives to the encryption field through almost risk-free return targets, which will further leverage the value of ETH Asset leverage has brought back the explosion of the Ethereum DeFi ecosystem.
In the next article, we will analyze several innovative mainstream protocols in the current market, deeply analyze the product mechanism and analyze how to maximize LSD capital gains through them.
