Exploring the Growth Potential and Strategic Opportunities of the LSD Track at Gryphsis Academy

Since early 2023, LSD has become one of the most important trends in the DeFi field. Gryphsis Academy researcher Briann analyzed the growth drivers and strategic opportunities of the LSD track, and stated that the size of this track may increase by 7 times in the next 5 years. CryptoScott.eth, co-founder of Gryphsis Academy, summarized the report.

There are currently four main ETH staking methods: independent staking, stSaaS, pool staking, and centralized exchange staking. Among these, pool staking is the most popular method, holding a 36.6% market share of ETH staking. Among pool staking, Lido Finance leads with a 73% share due to its first-mover advantage and backing from top institutions, almost monopolizing 97% of the liquidity staking market.

LSDFi is a DeFi product or protocol based on LSD, which can be classified into lending platforms, yield protocols, aggregators, and service products. Despite recent substantial growth in the LSD market, there is still potential for further growth. Five main driving factors include the current low staking ratio, infrastructure development, staking refinancing, institutional capital inflows, and yield competition. The current staking ratio of ETH is much lower than other chains, with staking ratios of other chains being 2-5 times that of ETH. The staking activity since the Shapella upgrade makes it unlikely that the staking ratio will decrease in the future.

In the LSD industry, LSDFi currently offers the most opportunities, while staking refinancing may drive the future expansion of the LSD market with innovative concepts. EigenLayer’s refinancing concept can further drive the development of the LSD ecosystem. By reducing security costs and increasing the number of developers, the positive feedback loop between adoption and rewards will drive more staking refinancing activities. In addition, using the compounding effect of DeFi, LSDFi protocols have sparked a yield war, increasing returns to attract users, with notable protocols including Pendle Finance and Lybra Finance.

Reference: https://twitter.com/CryptoScott_ETH/status/1664257682101121024

Like what you're reading? Subscribe to our top stories.

We will continue to update Gambling Chain; if you have any questions or suggestions, please contact us!

Follow us on Twitter, Facebook, YouTube, and TikTok.


Was this article helpful?

93 out of 132 found this helpful

Gambling Chain Logo
Digital Asset Investment
Real world, Metaverse and Network.
Build Daos that bring Decentralized finance to more and more persons Who love Web3.
Website and other Media Daos

Products used

GC Wallet

Send targeted currencies to the right people at the right time.