Lido announced (6/11) a new partnership with Mellow Finance, one of the founding members of the Lido Alliance, to provide stETH holders with an advanced DeFi vault, including a re-staking strategy developed in partnership with Symbiotic. This update is expected to increase the utility and liquidity of staking ETH while providing new re-staking opportunities for Ethereum stakers. Lido’s action is also a natively created re-pledge business after the re-pledge trend started by EigenLayer.
In Lido’s plan, Symbiotic is analogous to the re-hypothecation protocol EigenLayer, while Mellow Finance belongs to the liquidity re-hypothecation protocol LRT.
(Pledge on new fronts! Lido co-founder and Paradigm secretly back EigenLayer rival Symbiotic)
Unlock the new potential of stETH with Mellow Finance
Advanced DeFi strategies for Ethereum stakers
Lido’s strategy is one of Lido’s plans to support Ethereum and LST-related projects. Through cooperation with Mellow Finance, it will bring more value and possibilities to the staking community. The Lido Alliance will foster collaboration and strengthen stETH’s position as the preferred collateral in the market, especially when it comes to re-hypothecation, bringing value to stETH holders.
Through cooperation with Mellow Finance, Symbiotic and multiple planners including Steakhouse, P2P, Re7 Labs and MEV Capital, Lido designed a new vault to allow stETH holders to participate in decentralized re-hypothecation and create more new opportunities .
What benefits will stETH holders have?
Re-staking stETH: Maximize the utility of stETH and leverage it for additional DeFi opportunities.
Get Mellow Vault LRT: Get LRT rewards from Mellow Vault.
Continue to receive staking rewards: Maintained stETH staking rewards.
Benefit from Vault Strategies: Earn additional staking rewards based on Vault’s Mastermind Strategies (not yet launched).
Accumulate Mellow and Symbiotic Points
Mellow Finance will have four new vaults
Steakhouse Financial: stETH APR + Symbiotic points + Mellow points + restaking APR
P2P Validator: stETH APR + Symbiotic points + Mellow points + re-staking APR
MEV Capital: stETH APR + Symbiotic points + Mellow points + re-staking APR
Re7 Labs: stETH APR + Symbiotic Points + Mellow Points + Re-staking APR
Play the Re-Stake Game on Lido
Mellow Finance enables the creation of permissionless liquid recollateralized tokens (LRT) based on individual risk appetite and curation models. Lido will integrate introduction and links to Mellow deposits on its main page, ensuring continued liquidity through the new stETH LRT’s points program.
Traditional LRT often limits users to a single approach. Mellow Finance allows users to create customizable LRTs, allowing planners to design strategies that best suit a variety of preferences and goals.
Safety is the focus
Lido said the vaults have undergone thorough testing, comprehensive audits and ongoing monitoring.
Researcher comments: Self-destruction is impossible
Cupid, a researcher at Sudo research, said that in short, Lido + EigenLayer or Symbiotic is an impossible diagonal combination. Symbiotic is a competitor of EigenLayer and is also locked into services similar to AVS. stETH now has two terminals: EigenLayer or Symbiotic, and existing LRT protocols can be chosen.
Symbiotic also has an interest rate advantage because it can be used to play Paradigm's unique pinch technology (sandwich attack), which can increase the interest rate. However, currently the pinch technology only supports rETH. Going a step further, stETH can be hosted by different people and then placed in Symbiotic, such as the re-pledged tokens on Mellow Finance.
Cupid said that the re-staking ecosystem previously only had EigenLayer as the overwhelming protocol. Now the cooperation with Symbiotic may allow more native users of Lido to enter the market and re-stake. Why is it said that self-destruction is impossible? Because everyone may enter the re-staking ecosystem. If it explodes, it will be a complete explosion. Therefore, Lido will work hard to maintain re-staking.
In this article, Lido can also earn points! The post Mellow Finance and Symbiotic cooperate to attack the stETH re-hypothecation market first appeared on Chain News ABMedia.
