Author: Teahouse Waiter
1. Project Introduction
Lista DAO is a BNB chain-based liquidity staking and decentralized stablecoin (LSDFi) project that aims to provide returns for pledged crypto assets (such as BNB, ETH, stablecoins, etc.) and support lending decentralized stablecoin LISUSD (also known as decentralized stablecoin).
Formerly known as Helio Protocol, in August 2023, Binance Labs invested $10 million in Helio Protocol, which then merged with Synclub, a staking infrastructure and liquid staking provider on the BNB chain, to form Lista DAO.
Lista DAO aims to create a low-threshold DeFi protocol using innovative liquidity staking solutions. Its core vision is to explore various application scenarios such as stablecoin re-staking in the context of liquidity staking, starting with BNB, and ultimately build a low-threshold LSDFi protocol on multiple chains.
The protocol is based on and extends the MakerDAO model, including a dual-token model LISUSD and LISTA, as well as a series of mechanisms that support instant conversion, asset collateral, lending, yield farming and other functions.
2. Core Mechanics
2.1 Stablecoin lending mechanism
One of Lista DAO's core products is stablecoin lending services, which are mainly achieved through an over-collateralization model.
2.1.1 Operational Mechanism
1. Overcollateralization model
Lista DAO uses an over-collateralization model to ensure the stability and security of the system. Users can pledge crypto assets such as ETH, BNB, sLISBNB, etc. to borrow decentralized stablecoin LISUSD. The value of the collateral must be higher than the value of the borrowed stablecoin. This mechanism can effectively reduce the risk of loan default.
For example, a user who pledges $100 worth of BNB may only be able to borrow $70 worth of LISUSD to ensure that the system has enough buffer to cope with market fluctuations.
2. Decentralized Stablecoin LISUSD
LISUSD is Lista DAO's decentralized stablecoin, using decentralized liquid pledged crypto assets as collateral. Unlike traditional stablecoins, LISUSD does not rely entirely on an absolute price peg to a fiat currency, but allows a certain amount of price fluctuation to better reflect the actual market situation.
LISUSD is designed to provide a relatively stable store of value and medium of exchange while maintaining decentralization.
3. Types and innovations of mortgage assets
Lista DAO not only supports traditional crypto assets such as ETH and BNB, but also launched the Innovation Zone, which allows users to pledge innovative liquid pledge assets such as WEETH from Etherfi and STONE from Stakestone. This provides users with more collateral options and enhances the flexibility and capital efficiency of the system.
2.2 Liquidity Staking
Another core product of Lista DAO is liquidity staking. Through this mechanism, users can pledge crypto assets and obtain corresponding liquidity tokens to improve the efficiency of fund use.
2.2.1 Operational Mechanism
1. Liquid Staking
Users can stake crypto assets such as BNB to obtain liquidity staking certificates (such as sLISBNB). These certificates can not only be used within the Lista DAO platform, but can also be used for lending, providing liquidity, and other operations on other DeFi platforms, while still receiving staking rewards.
Liquidity staking separates the returns and liquidity of staked assets, allowing users to enjoy staking returns while still being able to flexibly use these assets for other DeFi activities.
2. Generation and use of sLISBNB
Staking BNB to generate sLISBNB: When users stake BNB to Lista DAO’s liquidity staking contract, sLISBNB corresponding to the amount of staked BNB will be generated.
Using sLISBNB: Users can use sLISBNB to perform operations such as lending and providing liquidity on various DeFi platforms, while still receiving the benefits of BNB staking. The application scenarios of sLISBNB on different platforms include providing liquidity, lending, and yield farming.
3. Benefits and expenses
Staking income: After users stake BNB, they will receive staking income from the BNB network. These income will be distributed to users holding sLISBNB in proportion.
Fee structure: Lista DAO may charge certain management fees or transaction fees, which are used to maintain the operation and development of the platform. The specific fee structure will be detailed in the agreement's documentation.
4. Mortgage and lending
Overcollateralized lending: Users can use sLISBNB as collateral to borrow decentralized stablecoin LISUSD. This method not only increases the liquidity of user assets, but also allows users to obtain more funds for investment or other operations through lending.
Borrowing interest: Users who borrow LISUSD need to pay a certain amount of borrowing interest, which is currently 0%. Users can repay the loan at any time and get back the mortgaged sLISBNB.
2.3 Innovative Collateral
In order to provide more flexible and diverse collateral options, Lista DAO introduced the Innovation Zone, allowing users to use a variety of new liquid pledge assets as collateral to increase the flexibility and capital efficiency of the system.
2.3.1 Operational Mechanism
1. Innovation Zone
Purpose: The establishment of the Innovation Zone aims to include eligible Liquid Staking Tokens (LST) and Liquidity Re-staking Tokens (LRT) as collateral options, providing users with more choices and improving liquidity and capital utilization efficiency.
Collateral types: In addition to traditional crypto assets such as ETH and BNB, the Innovation Zone also supports innovative liquid collateral assets such as Etherfi's WEETH, Stakestone's STONE, and Renzo's EZETH.
Mortgage risk and ratio: The collateral in the Innovation Zone has a higher risk factor than traditional collateral, and the mortgage ratio is also higher. The Lista DAO project will evaluate these collaterals every week to determine whether they are eligible for mortgage.
2. Specific types of collateral
Etherfi's WEETH: WEETH is a liquid staking token based on Ethereum, where users can stake ETH and get WEETH. WEETH can be used as collateral on Lista DAO to borrow LISUSD.
Stakestone's STONE: STONE is an innovative liquid staking token. Users obtain STONE after staking specific crypto assets. STONE can be used for mortgage and lending operations on Lista DAO.
Renzo’s EZETH: EZETH is another innovative liquid staking token that supports staking and liquidity management of multiple crypto assets. EZETH can be used as collateral on Lista DAO to increase users’ asset flexibility.
3. Borrowing and liquidity management
Users can use these innovative collateral to borrow the decentralized stablecoin LISUSD. By using these liquid staking tokens as collateral, users can not only gain liquidity but also participate in other DeFi operations such as yield farming and liquidity provision.
This mechanism effectively improves the capital utilization efficiency of users, allowing users to manage and use their encrypted assets more flexibly.
4. Revenue and Fee Structure
Staking income: Users can obtain corresponding staking income by staking innovative collateral. These income will be distributed according to different collateral types and market conditions.
Borrowing fees: Users need to pay certain borrowing interest and fees when borrowing LISUSD, which are used to maintain the operation and development of the platform. The specific fee structure is detailed in the protocol documentation.
3. Token Economics
3.1 LISUSD
Definition: LISUSD is a decentralized, unbiased, collateralized stablecoin soft-pegged to the US dollar. Users can borrow LISUSD by collateralizing assets on the Lista platform. LISUSD is generated and stabilized by collateral assets deposited in the Lista Collateral Vault (CEVault).
Liquidity: Users can borrow LISUSD by depositing collateral assets into Lista's CEVault, which is the main way LISUSD enters circulation. Others can buy LISUSD through brokers or exchanges, or obtain LISUSD by providing liquidity on decentralized exchanges (DEX). LISUSD can be used like any other cryptocurrency for payment, transfer, and purchase of goods and services.
3.2 LIST
Definition: LISTA is the native cryptographic protocol token of Lista DAO, which is transferable and multifunctional. The LISTA token is designed as an interoperable utility token, primarily used for decentralized payments and settlements between participants within Lista DAO.
Function:
Governance: LISTA token holders can propose and vote on governance proposals to decide on future features, upgrades and parameters of the Lista DAO (such as revenue pool allocation for ecosystem development and growth, addition of new vaults, protocol parameters and fee levels, etc.).
Incentive Mechanism: LISTA tokens are used to incentivize users to participate and contribute in the Lista DAO ecosystem, and to receive rewards through activities such as deposits, staking, trading, and governance.
Liquidity: LISTA tokens can be exchanged on decentralized exchanges or placed into yield farming pools, through which users can maximize their capital efficiency, obtain borrowing and compound returns.
Supply and circulation:
Maximum token supply: 1,000,000,000 LISTA;
Initial circulation: 230,000,000 LISTA (23% of the maximum token supply);
Total Megadrop: 100,000,000 LISTA (10% of the maximum token supply)
Currently, the over-the-counter price of LISTA token is 0.8USDT.
Specific allocation ratio
Binance Megadrop: 100 million, 10% of total supply.
Airdrop: 10% of total supply.
Investors and Advisors: 19% of total supply.
Team: 35% of total supply.
Community: 40% of total supply.
DAO Treasury: 8% of total supply.
Ecosystem: 9.5% of total supply.
3.3 Token issuance and usage
1. Release
The issuance of LISUSD and LISTA tokens is mainly obtained through users' mortgage and lending operations, as well as activities and contributions within the ecosystem. The purpose of issuing tokens is to raise funds for project development, increase market brand awareness, and community building and social participation.
2. Purpose
LISUSD: As a decentralized stablecoin, LISUSD can be used for various payments, transfers, and purchases of goods and services. It can also provide liquidity and lend in DeFi operations.
LISTA: Mainly used for payment and settlement within the ecosystem, governance voting, and to incentivize user participation and contribution. LISTA does not represent any shares, ownership or participation rights, nor does it promise any fees, dividends, income, profits or returns on investment.
3.4 Economic Incentives and Liquidity Management
1. Economic Incentives
Participation incentives: Users can receive LISTA token rewards by performing activities such as deposits, pledges, transactions, and governance on Lista DAO. This mechanism ensures that users can receive fair compensation while participating in the ecosystem.
Governance Participation: LISTA token holders can participate in the management and decision-making of the protocol by proposing and voting on governance proposals. This decentralized governance mechanism enhances transparency and participation in the ecosystem.
2. Liquidity Management
Market Pricing: The secondary market pricing of LISTA tokens is not controlled by Lista DAO, and there is no mechanism or scheme designed to control or manipulate the secondary market price. Users are free to choose to exchange LISTA tokens on decentralized exchanges to maximize their capital efficiency.
Fund management: Through the liquidity pool of decentralized exchanges, users can provide liquidity and earn transaction fees and rewards. This mechanism not only enhances the liquidity of LISTA tokens, but also improves the capital utilization efficiency of the entire ecosystem.
4. Loan Process
1. Provide collateral
Users first need to provide collateral on the Lista DAO platform, which can be crypto assets such as BNB, ETH, sLISBNB, etc. The type and value of the collateral will affect the amount of LISUSD that users can borrow.
For example, if a user pledges $100 worth of BNB to the platform, the system will determine the maximum amount of LISUSD that the user can borrow based on the collateral ratio (e.g. 70%).
2. Generate LISUSD
When users provide collateral, they can borrow the corresponding amount of LISUSD based on the value of the collateral. LISUSD is Lista DAO's platform stablecoin, soft-pegged to the US dollar.
The LISUSD generation process is based on the collateral provided by users, ensuring the security and stability of lending.
3. Borrowing LISUSD
After providing sufficient collateral, users can borrow LISUSD through the platform. The borrowed LISUSD can be used for various DeFi operations such as payment, transfer, purchase of goods and services, or investment and yield farming on other DeFi platforms.
There will be a certain amount of interest during the lending process, and the current interest rate is 0%. This low interest rate helps attract more users to participate in the lending operations of the platform.
4. Repay the loan
Users can repay the borrowed LISUSD and the corresponding loan interest at any time. Once the loan is repaid, users can get back their collateralized assets.
The loan repayment process is also very simple. Users only need to return the borrowed LISUSD and interest to the platform.
5. Retrieve collateral
When the user fully repays the loan, they can get back their collateralized assets. These assets can continue to be used for other DeFi operations or re-collateralized to borrow more LISUSD.
6. Liquidation Mechanism
If the user fails to repay the loan on time and the value of the collateral drops to a certain level, the system will trigger a liquidation mechanism. Part or all of the collateral will be sold to repay the loan, ensuring the stability and security of the system.
The liquidation price and liquidation ratio will be adjusted according to market conditions and protocol parameters. This mechanism effectively reduces the risk of loan default and protects the interests of the platform and other users.
5. Binance megadrop guide
On May 23, Binance announced the deployment of Lista (LISTA token) on Binance Megadrop, where users can stake BNB and complete Web3 tasks to earn rewards.
Megadrop is a new token launch platform launched by Binance that allows users to get early access and receive airdrops from promising projects. Projects launched on Megadrop are guaranteed to be listed on the Binance exchange.
Token rewards are distributed based on the total points earned by the user. The total points depend on the BNB locked points, Web3 Quest coefficient, and Web3 Quest rewards. The formula is as follows:
Total points = (BNB locked points x Web3 task coefficient) + Web3 task rewards
BNB Lock Point
Points are calculated based on the amount of locked BNB and the lock-up time. The longer the time, the higher the points. Binance calculates points based on the daily average locked-up snapshot (points may change due to lock-up fluctuations).
There are four fixed coefficients for BNB lock-up points: 30 days, 60 days, 90 days, and 120 days:
If the lock-up period is less than 59 days, the points will be increased by multiples of 30 days.
If the lock-in period is less than 90 days, the points will be increased in multiples of 60 days.
If the lock-up period is between 90 days and less than 120 days, the points will be increased in multiples of 90 days.
If the lock-in period is 120 days or more, the points will be increased by a multiple of "120 days"
Megadrop Participation Guide
To participate in the Megadrop, users need to lock BNB tokens in Binance Simple Earn and/or complete Web3 Quest tasks in the Binance Web3 wallet. Rewards for eligible users are calculated based on the individual points ratio divided by the total points of all users.
Visit the Binance app on your phone, select More, and then Megadrop.
Browse the list of launched Web3 projects and choose the ones you want to get involved with.
Once you enter the details page, read the program requirements and rules carefully.
Register BNB and lock it for an appropriate period.
Complete the tasks in the Tasks section.
6. Team / Financing
The success of Lista DAO is inseparable from a strong team with profound background. The core team members have rich experience and achievements in blockchain technology, financial technology and operation management, providing a solid foundation and guarantee for the development of the project.
Toru Watanabe is the founder and CEO of Lista DAO, responsible for the overall strategic planning and execution of the project. As a founder, he has extensive experience in blockchain technology and project management, and leads the team to promote the development of Lista DAO.
Co-founder and Chief Operating Officer (COO) Terry Huang has served as a regional manager at Binance and strategic director at ChainNews. He has extensive experience in the blockchain field and is good at operations management and marketing.
Toru Watanabe and Terry Huang both have experience working at Binance, which gives them a deep understanding and practical experience in the cryptocurrency market and blockchain technology. As the world's leading cryptocurrency exchange, Binance provides them with rich industry resources and connections.
Binance Labs invests $10 million in Lista DAO (formerly Helio Protocol) to help it transform into a liquidity staking platform. The funds will be used to build infrastructure on the BNB chain and expand to other networks such as Ethereum, Arbitrum, and zkSync. Helio Protocol is the issuer of the overcollateralized stablecoin HAY, and merged with staking provider Synclub in July 2023 to establish a new foundation to manage the revenue streams of Synclub and Helio. The funds will accelerate technology research and development and platform upgrades, especially in the fields of liquidity staking and decentralized finance. The investment will also be used for marketing and user education to enhance Lista DAO's global visibility. Through cooperation with Synclub, Lista DAO has further improved its technical strength and market position, and is expected to become an important player in the field of decentralized finance in the future.
7. Project Evaluation
7.1 Track Analysis
Lista DAO belongs to the decentralized finance (DeFi) track, specifically involving the following sub-fields:
1. Liquid Staking
Liquidity staking allows users to stake crypto assets (such as BNB, ETH) and obtain liquidity certificates (such as sLISBNB), which can be used for operations such as lending and providing liquidity in the DeFi ecosystem, while users can still receive staking rewards.
This technology improves the liquidity of user assets and capital utilization efficiency, and is an important innovation in the DeFi field.
2. Decentralized Stablecoin
Lista DAO offers a decentralized stablecoin, LISUSD, which users can borrow by pledging crypto assets. LISUSD is designed to maintain price stability, similar to MakerDAO’s DAI.
Decentralized stablecoins provide users with safer and more transparent financial tools, reducing dependence on the traditional financial system.
3. Overcollateralized Borrowing
Users can borrow stablecoin LISUSD by pledging a certain amount of crypto assets. This over-collateralization model ensures the stability and security of the system and prevents the risk of loan default.
This mechanism is widely used in the DeFi ecosystem and is a core function of many decentralized lending platforms.
In the DeFi space, there are several projects similar to Lista DAO in the areas of liquidity staking, decentralized stablecoins, and over-collateralized lending:
1.Lido Finance
Field: Liquidity Staking
Introduction: Lido is the largest liquidity staking platform on Ethereum. Users can stake ETH and obtain stETH. StETH can be used on DeFi platforms, and users can still receive ETH staking rewards.
Similarities: Both Lido and Lista DAO provide liquidity staking services to improve the liquidity and utilization of user assets.
2.MakerDAO
Field: Decentralized stablecoin
Introduction: MakerDAO is the issuer of the decentralized stablecoin DAI. Users can generate DAI by mortgaging crypto assets such as ETH. The price of DAI is soft-pegged to the US dollar.
Similarities: Lista DAO’s LISUSD is similar to DAI in that both are decentralized stablecoins generated through over-collateralization and aim to provide price-stable crypto assets.
3. Ghost
Field: Lending
Introduction: Aave is a decentralized lending platform where users can lend or borrow various crypto assets. Aave provides over-collateralized lending services to ensure the security and stability of the system.
Similarities: The over-collateralized lending service provided by Lista DAO is similar to Aave. Users can borrow stablecoins by pledging crypto assets and obtain flexible funding options.
7.2 Project Performance
As of May 24, Lista DAO has a total locked value of $463,853,482, a collateral value of $301,170,727, a Liquid stake of $162,682,754, and a total borrowed amount of $60,274,786.
The Lista DAO project has performed well in liquidity staking and decentralized lending. The total locked value (TVL) of BNB, sLISBNB, and ETH is $114,302,940, $30,818,259, and $34,681,465, respectively, showing the high demand for users to pledge these assets. The minimum collateral ratio (MCR) is 150%, ensuring the stability and security of the system. The lending rates are 9.50% and 11.00%, respectively, providing flexible funding options.
ListaDAO Innovation Zone supports pledging Ether.fi's weETH, StakeStone's STONE, and Renzo's ezETH to borrow stablecoin lisUSD. As of May 23, the value of the pledged assets in ListaDAO Innovation Zone is approximately US$5.56 million.
7.3 Project Advantages
1. Decentralization and security
Lista DAO's lending mechanism is completely decentralized, and users have full control over their assets, ensuring the security and transparency of the system.
The over-collateralization model further ensures the stability and security of the system and effectively prevents the risk of loan default.
2. Flexibility and efficiency
Users can flexibly choose the type and amount of collateral and adjust it according to their own needs and market conditions. The lending process is simple and efficient, and users can borrow and repay LISUSD at any time.
Through liquidity staking, users can enjoy staking returns while flexibly using these assets for other DeFi operations, thereby improving capital utilization efficiency.
3. Low interest rates and diversification benefits
Low lending rates help attract more users to participate in the lending operations of the platform. Users can obtain more funds for investment or other operations through lending, thereby increasing overall returns.
Diversified income channels enable users to obtain stable returns under different market conditions.
4. Reduce pledge risk
By separating staking income and liquidity, users do not have to release the stake when they need funds, reducing the risks caused by market fluctuations.
The liquidity staking mechanism ensures that users have the flexibility to use their assets at any time while still enjoying the benefits of staking.
7.4 Challenges and Future Prospects
1. Market volatility risk
Despite the over-collateralization and liquidation mechanisms, the high volatility of the crypto market may still pose risks to users’ assets and the stability of the platform. Users need to pay close attention to market dynamics and manage risks.
Lista DAO needs to continuously optimize risk management mechanisms to ensure the stability and security of the system.
2. User education and adoption
The lending mechanism is relatively complex and requires users to have certain DeFi knowledge and experience. Lista DAO needs to strengthen user education to help users understand and use the lending function of the platform.
Increasing user adoption is the key to the success of the project, which requires promotion and publicity through multiple channels and activities.
3. Multi-chain expansion plan
Lista DAO plans to expand its lending functionality to multiple blockchains such as Ethereum, providing users with more diverse choices and a wider range of application scenarios.
Multi-chain expansion will further enhance Lista DAO’s ecosystem, giving it a more prominent position in the decentralized finance space.
8. Conclusion
In summary, the Lista DAO project has demonstrated strong potential and steady growth in the field of decentralized finance (DeFi). By offering a variety of staking and lending options, including BNB, sLISBNB, and ETH, Lista DAO provides users with high liquidity and flexible capital utilization options, with a total locked value (TVL) of more than $179 million, demonstrating users' high trust in the platform. The stable minimum collateral ratio (MCR) and competitive lending rates further enhance the security and attractiveness of the system. The introduction of new assets such as weETH, ezETH, and STONE further demonstrates its innovation and market adaptability. In short, Lista DAO is gradually establishing its leadership in the DeFi market through high-quality services and continuous innovation, and the future is promising.