Original author: Grenade｜Kerry
Foreword: This summer, the LSTFi track began to receive a lot of attention, and it may be the driving force behind the next stage of the DeFi revolution. In order to attract more investors to the LSTFi track, the well-known projects Helio Protocol and Synclub announced a merger plan , work together to promote the future of the LSTFi field, hoping to make Helio Protocol the center of LSTFi and stablecoin innovation!
Why participate in LSTFi?
With the completion of the Ethereum Shanghai upgrade, investors can now freely pledge and withdraw ETH (which could not be withdrawn in the past), increasing investors' willingness to pledge ETH, which has also enabled the LSTFi ecosystem to achieve huge growth in 2023
According to data from the cryptocurrency data platform DefiLlama, of the US$25 billion TVL in Ethereum, Lido, the leader of LSTFI, alone accounts for US$14.6 billion, accounting for nearly 60% of the entire ecosystem’s funds. It is the fastest growing DeFi on the market. One of the agreements.
LSTFi is the abbreviation of Liquid Stake Token Finance. Its concept refers to a decentralized financial protocol (DeFi) built on liquid pledge tokens (LST). It is also commonly called LSDFi (Liquid Stake Derivatives Finance).
These DeFi protocols can help pledged crypto assets (LST) release liquidity, allowing users to participate in DeFi activities while also conducting more investment operations on these assets, increasing the value of LST and forming a new financial product.
Are there development opportunities for LSTFi on other chains?
Since LSTFi on the Ethereum network is developing so well, maybe other blockchain networks will have the same opportunities? According to the previous development model of DeFi protocols, usually every blockchain network will have DEX, Lending, Derivative, Yield, NFT and other protocols. According to the popularity of LSTFi, other chains may also have potential opportunities to ambush.
However, because the market is still in an unstable state, the amount of funds is not as abundant as during the 2021 bull market. The TVL amount of the Ethereum network alone is 4 times that of the second-place Tron, so we selected the current TVL There are networks that have exceeded $1 billion, mainly Tron, BNB and Arbitrum.
Apart from USDT, which is commonly used for trading, other developments in Tron’s ecology have always been relatively mysterious, so we won’t discuss them much here. Next, let’s take a look at BNB and Abitrum.
There have been many related agreements in the development of LST on the BNB network. TVL has reached more than 100 million US dollars. Judging from the growth volume in one month, the overall trend is upward.
There are currently only a few protocols on the Arbitrum network, and the TVL is only 300,000 US dollars. Although it may be a good development opportunity, in the case of insufficient funds in the bear market, it is best to invest in blocks that are already showing an upward trend. Therefore, we focus mainly on the LSTFi protocol on the BNB network. .
LSTFi Rising Star Helio Protocol on BNB Chain
On July 4 this year, Helio Protocol and Synclub on the BNB chain officially announced their merger to promote the future of the BNB Chain LSTFi field.
Helio Protocol is an over-collateralized lending protocol on the BNB chain. Users can obtain HAY tokens by providing $BNB as collateral. $HAY can be used for staking or liquidity mining to earn income, while Synclub A self-managed validator node on BNB, known for providing on-chain secure staking services, may create important influence in the LSTFi field through the merger of the two parties.
As the merger represents Helio Protocol’s commitment to incorporating LST into its DeFi model, Helio is also making changes to its over-collateralized lending model. This update aims to further unleash the potential of LST to enhance HAY’s yield.
In addition, Helio's future plans also include adding a large number of new BNB assets (such as SnBNB) and integrating other decentralized assets (non-BNB LST) as collateral for HAY. Specific details have not yet been officially announced.
Further reading: What is the Helio Protocol? Liquidity protocol Helio Protocol on the BNB chain and decentralized stable currency $HAY
New organizational structure and foundation
In addition to the active development of the LST track, according to Helio's official announcement, due to the merger of the two parties, it will establish a new organizational structure in the future and establish a foundation before the end of the year. Under the new structure, the foundation will integrate business Supervise the revenue and operating status of Helio Protocol and Synclub in terms of development, operations, marketing, security and risk management. This approach will promote efficiency and coordination between the two organizations.
In addition, if there are plans to launch a governance token after the merger of Helio Protocol and Synclub, its governance token will be issued by this new foundation. This will strengthen the consistency of interests of both parties and ensure that after the merger, the new organization The architecture can be more cohesive, demonstrating Helio Protocol's emphasis on the LSTFi track.
in conclusion
With the vigorous development of LSTFi in 2023, more and more investors are beginning to realize the potential of LSTFi, which is one of the few tracks in the market that is still growing.
The merger of Helio Protocol and Synclub will provide developers with solid basic knowledge and develop better products, allowing LSTFi to be widely adopted in the BNB Chain ecosystem and other fields, and making Helio Protocol a leader in LSTFi and stablecoin innovation. Center, have a significant impact on the existing LSTFi market!
The content of this article is officially provided and does not represent the position or investment advice of this site. Readers must make their own prudent assessments.
This article LSTFi summer is coming, and Helio Protocol is expected to become the next dark horse in the market! First appeared in Zombit.