Understanding Dank in one article: LSD revenue differentiation protocol based on zkSync ecology

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LSD

1. On-chain income source Staking income can carry the income demand of a large amount of funds on the chain; the largest source of interest has exceeded loans.

2. The interest rate benchmark Staking rate of return is much higher than the previous lending rate. After the Shanghai upgrade, it can be regarded as the risk-free interest rate of the ETH standard.

3. Staking income will also be transmitted to the entire on-chain world through DeFi (such as lending), becoming the interest rate benchmark in the DeFi world.

With high-quality interest-bearing assets like LSD, we believe that LSDFi will have many innovative protocols. For example

• Take advantage of LSD Yield

• Actively Manage LSD Strategies

• Early access to LSD benefits

• Trading LSD Yield

The LSD ecosystem will increase the asset value and TVL on the chain, bringing the second DeFi Summer.

• LSD is the most important narrative for Ethereum this year

• LSDFi is the most innovative track in DeFi

• There will be more protocols built on top of LSD

• Liquidity determines whether the Defi protocol can survive

• These LSD related protocols will require initial liquidity

Why Dank

Dank is an LSD income differentiation protocol based on the zkSync ecology. It generates corresponding principal certificate tokens (OT) and income certificate tokens (YT) by splitting the risk-free ETH benchmark interest rate income certificates. These two types of voucher tokens can be traded through customized AMMs, which further releases the benchmark liquidity of ETH, and brings more diversified income combinations to ecological players.

Provide users with attractive returns by increasing yield exposure and hedging the risk of yield declines. Simply put:

• discounted forward assets

• Provide LSD low-risk fixed rate of return, stable growth

• Take advantage of exposure to future income streams without collateral

Dank is the best tool for users to gain stable exposure to Ethereum staking, by giving holders of staking yield-generating assets the opportunity to generate additional yield and pre-lock future yield while giving traders direct access to future yield streams , without the need for underlying collateral.

Overall, there are many use cases for the Dank Protocol. With the completion of the Ethereum Shanghai upgrade and the integration of more zkSync Era ecological projects, Dank Protocol is likely to become a new star in the zkSync Era ecological LSD track.