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  • Liquid staking: Overall staked ETH is experiencing exponential growth as a result of reduced withdrawals, which can be attributed to lower liquidity risks and the growing popularity of LSDfi protocols. Having overtaken DEXes, liquid staking now ranks number one in total value locked (“TVL”) across different DeFi sectors.

  • Four primary methods exist for staking Ether, including pooled staking service providers, centralized exchanges (“CEXes”), staking-as-a-service (“SaaS”), and solo staking.

  • With a 32.0% market share, pooled staking through Lido is the most prevalent approach currently. Nonetheless, other contenders like Frax seek to expand their market share by introducing a decentralized, inventive peer-to-pool lending marketplace.

  • Top LSDfi categories: LSDfi has many categories, including CDP stablecoins, DEXes, Index LSTs, yield strategies, and more. Lending currently holds the top position with a TVL of US$2.59 billion, while CDP stablecoins trail closely behind with a TVL of US$2.35 billion.

  • LST yields and TVL: Typically, yields for LSTs are the highest on secondary or derivatives protocols like Pendle, Convex, and Aura. However, TVL is usually greater on primary DEXes such as Curve.

  • Protocols spotlight: While many LSDfi projects have been gaining popularity, we highlight Pendle and EigenLayer, which have recently seen bumps in their social metrics. Pendle serves as a yield-trading protocol; and EigenLayer enables restaking for both ETH and LSTs.


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