GM, this is your Daily Bolt briefing.
One of the hottest narratives in crypto currently is LSTs. The hype around liquid staking isn’t just contained to Ethereum. Builders across the chains are launching their own chain-specific staking solutions. In this edition, we’ll be briefing you on several interesting projects building in the LST and LSD space.
Learn about unshETH, an LST yield solution, and their plans to go omnichain.
Learn how projects like Pendle Finance, Linear Protocol, and Diva Protocol are taking action to capitalize on the LSDfi narrative.
Yesterday, we hosted our first members-only discord call for our premium members. This workshop, which was a part of our new ‘Metrics Matter’ series, is just the first of many more to come. Our first weekly workshop, hosted by our finance lead Souvlaki, focused on the intricacies of lending markets in DeFi. More on this soon…
Over and out ⬇️
1/ blocmates - Developments from unshETH and the state of LSD ecosystem
Preview: Alta1r and Grant discuss the developments from unshETH and the state of the LSD ecosystem including omnichain plans and more. Click here to listen to the full episode (43mins).
Read our Note (6 mins) and save 37 mins.
Here are some key takeaways:
unshETH is a DeFi primitive that promotes validator decentralization by fostering competition among ETH liquid staking protocol
Alta1r says that unshETH is a new Ethereum-based protocol that allows users to deposit $ETH and/or LSDs/LST to earn boosted rewards.
He says that the design of unshETH allows a user who wishes to gain liquid staking token yield from a variety of different LSTs to gain access to unshETH which is an index of the top emerging LSDs on Ethereum.
He says that the composition of the unshETH basket is determined by the unshETH DAO. Each LSD in the basket has a limit on how much of the basket it can comprise, as well as a target weight. This structure incentivizes deposits of certain LSDs and helps maintain a balanced composition of the basket.
Alta1r says that by bringing unshETH to these networks such as Optimism, they can help increase the adoption of these networks. Users of these networks would have access to the same protocols they are used to using on Ethereum, which could make these networks more attractive to them.
Alta1r says that unshETH is planning for further omnichain expansion, with the next one being Optimism. He says that this shows their commitment to increasing the accessibility of their platform and reaching as many users as possible.
Alta1r says that they are preparing their Arbitrum expansion and will have their full Arbitrum deployment available soon. This expansion will allow them to serve more users and reduce transaction costs.
He says that unshETH is expecting to release its audit report soon, which will provide an independent review of its platform's security. The team is working on a new version of the Virtual Digital Machine (VDM) with several optimizations. This new version is expected to significantly reduce gas costs.
2/ Metaweb Ventures-Introduction to Pendle, Linear, Diva, LSDs and LSDfi
Preview: Stanley, Pablo, and Anton introduce their projects, discuss LSDs, and talk about the LSDfi sector. Click here to listen to the full episode (43 mins).
Read our Note (5 mins) and save 38 mins.
Here are some key takeaways:
Pendle Finance is a permissionless DeFi yield-trading protocol, currently built on the Ethereum blockchain, where users can execute various yield management strategies.
Anton says that Pendle is a protocol that enables the tokenization and trading of yield. He adds that this means users can stake their assets in a liquidity pool, earning yield, and then tokenize that yield for trading.
Anton says that he is bullish on the LSD space and talks about Pendle’s desire to support all LSDs as much as possible. He says that Pendle is looking forward to offering liquid staking derivatives in the future to any chain that has proof-of-stake.
Anton says that Pendle separates the principle and interests of bonds similar to bond stripping. He adds that Principal Tokens (PTs) are equivalent to zero-coupon bonds while Yield Tokens (YTs) are detached coupons.
Linear Protocol is a liquid staking platform built on NEAR.
Stanley says that Linear has reached the largest total value locked (TVL) on NEAR.
Stanley says that Linear's approach to liquid staking generates more value than other protocols. He adds that NEAR offers higher yields than Ethereum's Lido Protocol.
He also adds that the threshold for launching a liquid staking protocol is lower than other chains, leading to more competition in the market.
Diva Protocol is a liquid Staking solution powered by Distributed Validators (DVT).
Pablo says that $divETH is a liquid staking token that uses distributed validation technology to extend Ethereum.
Pablo says that Diva Protocol only requires 1 ETH instead of 32 ETH to participate validator node. He believes that Diva is an extension of Ethereum that makes everything more accessible.
If you read these 2 Notes on Revelo Intel you would have saved: 1 hour and 15 minutes!