Recently, Lido's wstETH surpassed ETH to become the largest collateral asset on Maker. The DAI generated by Maker's collateralized wstETH reached 530 million, which is higher than the 497 million generated by collateralizing ETH.
2/ In addition, more and more people are minting crvUSD by pledging wstETH. This is equivalent to creating additional application scenarios for wstETH: in addition to staking income, further pledging to generate stablecoins to obtain liquidity.
3/ Among all the current Ethereum liquidity staking protocols and LSD tokens, wstETH is undoubtedly the leader - with a volume of up to US$14.2 billion, accounting for about 75% of the market share.
4/ Even if the collateral ratio (CR) is only 50%, it is enough to create another decentralized stablecoin leader. You should know that the total circulating market value of DAI, the leader of decentralized stablecoins, is only about 4 billion US dollars.
5/ On the other hand, this is also an opportunity for decentralized stablecoins such as DAI and crvUSD - they also urgently need high-quality collateral assets with sufficient volume and depth to expand their own stablecoin market size.
6/ At present, wstETH is at the forefront in this regard, which not only expands the use scenarios of Lido Finace's Ethereum liquidity pledge tokens and encourages more people to choose Lido for pledge. At the same time, it also further consolidates the status of wstETH as a mainstream LSD asset, which can be said to be a potential huge flywheel that promotes each other.
7/ Lido Finance's LSD ecological narrative may also usher in new positive variables as this scenario gradually unfolds. So how should we view the subsequent valuation space of LIDO? Please look forward to Hot Air Balloon's "Lido Finance, the second issue of "High-quality Crypto Recommendations"" to find out more.