Liquid staking derivatives (LSD) is one of the hottest topics in 2023. Through the liquid staking protocol, you can pledge your ETH to ensure network security, and you will be given LSD as well as staking rewards. You can also LSD is used in DeFi.

We all know that in the field of staking agreements, Lido is indeed the absolute leader, but this is mainly due to his first-mover advantage. Today we will introduce other liquid staking agreements that are silently accumulating strength!

1.StaFi

StaFi Protocol is a decentralized protocol built with the Substrate architecture. You may not know much about the Substrate architecture. This is the blockchain architecture developed by Parity. The entire architecture integrates many development modules, including consensus modules, P2P modules, Staking modules, etc. , Avalanche is the Substrate architecture used.

At present, the total amount of ETH pledged in the StaFi network is 13598.

StaFi takes the liquidity of pledged assets as the entry point, and focuses on solving the circulation obstacles of assets locked on the chain.

rToken is a redeemable token for pledged assets issued by the StaFi protocol. Its issuance method is different from that of Lido. The number of rTokens (Qr) will be determined according to the number of native tokens pledged by the user (Qs) and the rToken exchange rate (Cr). The specific rule is Qr=Qs/Cr.

Let's take an example to illustrate: I have pledged 10 ETH (Qs=10), if the current exchange rate of sETH after staking is 0.01, then the amount I will get is 10/0.01=1000 sETH

Currently, the platform supports pledged public chain networks such as Ethereum, Polkadot, Cosmos, etc.

2.Stakewise

The total amount of ETH pledged in the Stakewise network is 81088, and the number of pledgers is 3000.

As another liquid staking protocol, Stakewise has the same general logic as Lido. Its special feature is that it adopts a dual-token model. What does it mean?

To put it simply, separating the ETH pledged by the user from the corresponding pledge income is equivalent to separating the principal from the interest, and the corresponding derivatives are sETH2 and rETH2.

The main reason for this is to isolate risks and provide better liquidity.

Stakewise has also recently cooperated with some leading protocols, such as building Stakewise's DAO treasury through the Gnosis platform, and Stakewise has also deployed related services on the Gnosis Chain.

And in the upcoming StakeWise V3 release, users will be able to burn their sETH2 and rETH2 directly in the StakeWise app to claim their base ETH and rewards.

Regardless of whether it is Lido, Stakewise, or StaFi, there is still a lot of room for development. Why do you say that? Please look at the figure below. Currently, the number of ETH pledges only accounts for 19% of the total, while Solana has reached 71%, which is more than three times more than that of Ethereum.

This is also due to the fact that Ethereum has only changed from pow to pos not long ago, so the number of natural pledges will not be large, and as the king of the new public chain, the future development of Ethereum must be bright. On the other hand, this is also the pledge A good advantage of the development of the protocol is that it has enough time to carve out its own space in the market.