Since the completion of the Ethereum "Shanghai Upgrade" in April this year, a significant amount of early staked ETH assets in the ETH 2.0 network will be able to freely unlock from the staking network, allowing 18 million ETH to flow freely into the market. One month after the completion of the "Shanghai Upgrade," Tom Wan, a research analyst at 21Shares, analyzed that the number of pending validators on the Ethereum beacon chain has reached 33,450, setting a new historical high. This indicates that a large number of users are attempting to participate in staking.
In the lead-up to the Shanghai Upgrade, LSD (Liquid Staking Derivatives) became the preferred method for ETH holders to participate in staking. Stakers no longer need to meet the minimum staking threshold of 32 ETH, and the feedback of LST token assets satisfies the stakers' need to continue investing and profiting, increasing capital utilization. In the longer term, a broader range of ETH assets can participate in staking through LSD facilities, further enhancing the security of the Ethereum ecosystem. Currently, in addition to native DeFi protocols, major CEX giants such as Binance and Coinbase have also become key players in the LSD field.
With the completion of the "Shanghai Upgrade" and the influx of substantial market funds and staking demand, the potential market size for LSD development has further expanded. The LSD track has surpassed DEX to become the track with the highest Total Value Locked (TVL). The LSD track is becoming one of the main narratives in 2023 and the next bull market, with the potential to gradually break through the market size of hundreds of billions.
LSD is a powerful consensus yield asset with characteristics such as programmability, composability, and free flow, which can be applied to various DeFi scenarios. It satisfies investors' different needs for capital liquidity, capital efficiency, yield strategies, and risk management, giving rise to various forms of LSDFi businesses with high scalability.
As a decentralized on-chain liquidity provider ecosystem in the cryptocurrency industry, 0xLSD is fully dedicated to establishing a strong presence in the LSD track. However, compared to existing LSD ecosystems, 0xLSD has a broader ecological mission. It aims to involve more asset holders in the development, construction, and security maintenance of various underlying public chains. It aims to create stable and sustainable liquidity for the Web3 world and build a comprehensive financial service system on that foundation. At the same time, the 0xLSD ecosystem aims to inject sufficient liquidity into the industry and provide feedback to the industry while offering users exceptionally high returns. This process ensures that all investors can enjoy the development dividends of the LSD track.
0xLSD Ecosystem: Emerging Force in the LSD Wave
0xLSD is a liquidity provider in the LSD track and has built an all-in-one financial service ecosystem matrix based on this. It focuses on providing stable and continuous liquidity to the Web3 world in various ways. Building upon this, 0xLSD is also constructing ecosystem components to create a more complete ecosystem chain, making it easier for various roles to access 0xLSD's liquidity facilities. This allows more people to benefit from the development dividends of the new era and ultimately contributes to the long-term development of the Web3 world.
0xLSD is a more inclusive LSD ecosystem that goes beyond the Ethereum ecosystem. It focuses not only on Ethereum but also on other POS-based blockchain networks. Its goal is to encourage more users to participate in the development of public chain ecosystems. Initially, 0xLSD will be built on the Binance Smart Chain (BSC) and Arbitrum (ARB) blockchains.
The liquidity aggregation protocol, an ecosystem component within 0xLSD, acts as the "engine" and core component of the LSD ecosystem. This component utilizes AI and stock databases for data analysis and intelligent decision-making, identifying the protocol combinations with the highest yield to optimize liquidity provision and reduce transaction costs. Simultaneously, high-frequency on-chain data monitoring, sentiment analysis, AI analysis, and multi-signature nodes with permission verification help effectively mitigate risks and enhance security.
By leveraging mature AI-based strategy techniques, 0xLSD constructs an intelligent scheduler and yield aggregator that achieves optimal returns. By providing liquidity to different protocols on various blockchains, it fosters the long-term development of applications on different chains. Users who stake their assets can benefit from stable, substantial, and secure returns based on AI strategies, which can outperform traditional LSD products like Lido (without the risks associated with "yield farming" and the potential death spiral effect).
Compared to other LSD platforms that focus on maintaining the security of the underlying public chains, 0xLSD places more emphasis on helping them achieve ecological diversity. This is reflected in the mission of the 0xLSD ecosystem to promote the industry's development to the next level.
Apart from offering high returns, 0xLSD distinguishes itself by its low entry barrier and decentralized nature. Unlike centralized staking service providers, 0xLSD allows all users to participate without the need for cumbersome KYC procedures. Compared to platforms like Rocket Pool and Frax Finance, 0xLSD has a lower barrier to entry and caters to a wider user base.
In the context of the LSD layout around 0xLSD, the ecosystem is launching a series of components, including the 0xLSD on-chain derivatives protocol, flash swap protocol, eco-wallet, and aggregated public chains, to facilitate easier access for liquidity demanders and users. For example, the flash swap protocol enables users to seamlessly switch between different assets and further earn higher income from the LSD components (decentralized market-making service platforms) within the ecosystem. Emerging POS chain communities can leverage the eco-wallet, flash swap protocol, and LSD components to launch their own ecosystem tokens and secure a continuous flow of liquidity.
0xLSD has the potential to become the foundational infrastructure in the LSDFi field. The virtual asset financial system built on top of 0xLSD can accelerate the capital efficiency and liquidity of the entire DEX, significantly expanding the Total Value Locked (TVL) and capital value of the DEX ecosystem, thereby generating substantial ecological returns. It allows for the free combination and liquidity flow of cryptocurrency assets to enhance the ecological premium of project assets. By continuously leveraging platform funds to support project development, it can provide the platform itself with stronger profit capabilities, promote market growth, and indirectly accelerate the end of bear market cycles, fostering the return of positive sentiment to the entire cryptocurrency market.
With the development of the industry, LSD will become one of the important sectors and a blue ocean market worth billions of dollars. Meanwhile, 0xLSD is driving innovation in the LSD track in an extremely innovative way and contributing to the industry's development.
0xLSD is a decentralized liquidity provision protocol that supports multi-chain aggregation. It was initially built on the Binance Smart Chain (BSC) and Arbitrum (ARB) public chains, with the aim of creating stable and sustainable liquidity for the Web3 world, while also constructing a comprehensive financial service system on top of it. This addresses the pain points in the LSD market.