Illustration (source: freepik.com)

#Ethereum Shanghai Upgrade is just around the corner, and millions of #ETH is about to enter the market. Will this lead to a drop in ETH's price? Is it a nightmare await for ETH holders?

TL;DR:

Ethereum Shanghai Upgrade is planned to happen on April 12th 2023, this will allow ETH stakers to withdraw their staked ETH

Almost 18 million ETH staked, or equal to around US$32 billion

There are 2 options to withdraw the staked ETH: partial or full

Partial, stakers can withdraw only the interest, possibly 1 million ETH withdrawable for this option

Full, stakers can withdraw all of their staked ETH, but with the network maximum capacity of 50.400 ETH each day

57% of ETH stakers are liquid stakers through Liquid Staking Derivatives platform providers

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The Ethereum network transition from the Proof-of-Work (PoW) consensus mechanism to the Proof-of-Stake (PoS) evolution is ongoing to improve the network's scalability, energy efficiency, and security. This transition began with The Merge on September 15th, 2022.

Another major Ethereum upgrade operation is scheduled for this month, specifically on April 12th, 2023. This upgrade is called The Shanghai Upgrade, and it is rumored to significantly affect the price of ETH.

Why is that? Through The Shanghai Upgrade, there will be a major change in the Ethereum network and ETH. The change is that ETH stakers will be able to withdraw or unstake their staked ETH.

Since December 1st 2020, ETH can be staked on the Beacon Chain as the requirement to be a validator on the Ethereum network, with minimum 32 ETH to be staked. Beacon Chain is a new layer on the Ethereum network designed as "validators layer", the layer where transactions being validated and new blocks being created on the Ethereum network.

Until this day, ETH stakers could not withdraw and unstake their locked ETH back, but with the upcoming Shanghai Upgrade, stakers will be able to unstake and withdraw their staked ETH. This raises the question of how the Shanghai Upgrade will affect ETH's price. Will the upgrade cause a depreciation in ETH's price?

What it is Means for Ethereum Shanghai Upgrade?

Based on the data from Ethereum's official website, ethereum.org, at the time of writing this article, the total amount ETH being staked almost reach 18 million ETH, equivalent to around 32 million United States Dollar. This means that a significant amount of ETH may come into the market in the near future.

However, it is important to note that the staked ETH after the Shanghai Upgrade cannot be withdrawn all at once. This should help protect the ETH price and hold back selling pressure that might otherwise occur if all staked ETH were withdrawn simultaneously.

ETH staking statistics source: ethereum.org/en/staking/ (accesed on April 4th 2023, 5:30 AM UTC)

According to Binance Research, validators have two options for withdrawing their staked ETH: partial or full withdrawal.

With partial withdrawal, validators can withdraw only the interest earned on their staked ETH, without the original staked capital. This means that up to 1 million ETH (~US$1.8 million) could potentially enter the market through this withdrawal option.

Alternatively, validators can opt for the full withdrawal option, which allows them to withdraw both their staked capital and interest. However, the Shanghai Upgrade has been designed to limit daily withdrawals to 50,400 ETH (~US$91.3 million).

As a result, there will only be US$91.3 million worth of selling pressure on the ETH price each day from the full withdrawal option. Mathematically, this amount would only affect about 1% of ETH's price each day based on Ethereum's market cap in the last 24 hours.

It is worth noting that the majority of ETH stakers, which is 57% of them, are liquid stakers through Liquid Staking Derivatives (LSD) platform providers such as Lido, #Binance , Coinbase, and others.

Liquid Staking is a process of staking or locking coins, in this case, ETH, through #LSD platforms. Stakers will receive a token that has the same value as their staked ETH as a derivative ETH token. This allows stakers to use the derivative token for many things while still participating in validating the Ethereum network.

ETH stakers composition (source: #BinanceResearch )

LSD platforms have been existed long before the Shanghai Upgrade become the main topic and have been become the main option for many ETH stakers around the globe. Therefore, it can be said that this group of stakers - liquid stakers - do not have a special reason to sell off their ETH post-Shanghai Upgrade, as they would have already done so in the months before.

Conclusion:

With the implementation of those two withdrawal options, it can hold back the selling pressure post-The Shanghai Upgrade. However, only 43% of the ETH stakers are illiquid and waiting for the upgrade because the liquid stakers would have already sold their derivative ETH tokens long before.



DISCLAIMER:

This article is just for information purposes only, not any financial advice. This article may be used as a reference but please always Do Your Own Research (DYOR) based on your own personal preferences, especially when it comes to spending money. Mad's Crypto Corner is not responsible for your own financial decisions.

The long-awaited Hydro Mainnet is finally launching tomorrow.

Early Access Farming will begin with the Mainnet Launch. We have prepared EAF to introduce the basic utility of $hINJ and LSDFi .

To learn more about what EAF is, refer to the link below:
📄 https://t.co/mk4IM3LaX2… pic.twitter.com/Fl8px3WbMT

— Hydro Protocol (@hydro_fi) January 30, 2024

Infrastructure platform built on the Injective Network Hydro Protocol (HDRO) successfully concluded an investment round led by Injective, Vessel Capital, Moonhill Capital, SkyVision Capital, Exnetwork Capital, and contributors such as Quantstamp, Black Dragon, Trinito, Verse2, Paka, Coinseeker, DoraHacks, among others.

The company plans to use the newly raised funds to support the ongoing development of the project.

Hydro Protocol functions as the primary infrastructure platform for yield and liquidity strategies on the Layer 1 blockchain for decentralized finance (DeFi) applications Injective Network, integrating Liquid Staking Derivatives (LSD) and Real World Assets (RWA) to present a dedicated LSDFi product suite. Being among the first LSD/LSDFi (LSD Finance) protocols on Injective Network, Hydro Protocol seeks to introduce enhanced optimization and utility throughout the ecosystem.

Hydro Protocol is thrilled to announce the successful closure of our investment round, with esteemed industry leaders backing our vision!Hydro Protocol is backed by:@Injective_  @VesselVC@moonhillcap @SkyVisionCap  @exnetworkcap #Taureon @Quantstamp @BlackDragon_io… pic.twitter.com/eTCKLVDkVO

— Hydro Protocol (@hydro_fi) February 12, 2024

Hydro Protocol serves as a foundational force behind an LSD-centered ecosystem LSDFi, anchored by a core LSD asset–Hydro Protocol’s hINJ. While LSDFi can manifest in various structures, Hydro Protocol’s approach involves providing Real Yield Assets on the Injective Network.

Highlighting the user-friendly application of liquid staking, Hydro Protocol presents three distinct products, including Staked Assets, Farming, and Auto Compounding.

The main product of Hydro Protocol, LSD, provides liquid staking functionality, marking the inception and culmination of all aspects related to Hydro Protocol and Injective Network. 

Another essential product is yield optimization “The Farm” for liquid assets. It allows users to put their hINJ to work by staking their minted hINJ, gaining additional yields on their staked tokens. The farming yield operates as a form of airdrop, providing users with added yield after staking. During a pre-determined period, users have the opportunity to engage in “farming” for additional yield. Similar to a traditional farm, this yield is available for a temporary season and has a set expiration. Following the tokenomics of Hydro Protocol, a section of HDRO tokens is utilized to enhance rewards. 

Auto Compounding offers users the convenience of a “set it and forget it” approach, allowing them to optimize staking yields and enhancing rewards with INJ assets, eliminating the need for users to manually claim and re-stake their INJ rewards, saving both time and transaction fees.

Furthermore, Hydro Protocol has its token HDRO that serves as the governance and utility token. Capped at a maximum supply of 1 billion tokens, HDRO is structured to provide advantages to HDRO holders and stakers. The implementation of a value accrual mechanism enables the capture of real yield, with the proceeds proportionally utilized for HDRO buybacks. This captured value is then distributed to HDRO holders, offering benefits to stakers in the process.

Hydro Protocol Launches Mainnet and Outlines Future Plans  

Launched in 2023, Hydro Protocol recently marked a significant milestone by launching its mainnet at the end of January.Looking ahead to 2024, the project has an ambitious roadmap. Hydro Protocol aims to develop the LSDFi ecosystem on Injective Network further and bring RYAs into existence. The project also plans to establish partnerships with other projects both within and outside the Injective Network, creating additional utility for HDRO holders.

The recent Hydro Protocol’s successful investment round, coupled with its innovative approach and recent mainnet launch, positions it as a promising player in the decentralized finance landscape, offering a unique blend of liquid staking derivatives and real-world assets on the Injective Network.

The post LSDFi Infra Hydro Protocol Closes Strategic Funding Round to Boost Optimization and Utility Throughout Ecosystem appeared first on Metaverse Post.

Hello, ninja world! A groundbreaking protocol is making its debut on Injective, and it goes by the name Gryphon. Picture this: a fusion of DeFi titans Lido and Maker, Gryphon is here to elevate the Injective ecosystem to new heights.
What is Gryphon?
Gryphon is a decentralized #LSD (Liquidity Staking Derivatives) protocol designed specifically for #Injective . Going beyond traditional staking, Gryphon integrates borrowing and lending features, enabling users to optimize their staking strategies and unlock the liquidity potential of their staked assets.
Why Gryphon?
Layer one ecosystems often face challenges related to capital inefficiency, leading to locked funds and limited utility. Gryphon addresses this by allowing users to borrow against their staked assets, opening up new possibilities for liquidity use.
Key Features of Gryphon’s Testnet Launch
Borrow: Use staked assets like INJ, wETH, or wBTC as collateral to mint nUSD. Stake nUSD to earn a fixed 5% yield, and pair USDT/USDC with nUSD to earn additional Gryphon rewards.Stake: Stake nAssets to receive incentives and rewards, amplifying your overall staking rewards. Gryphon facilitates increased capital efficiency and flexible deployment.
Why Build on Injective?
Injective, as a platform, aligns with Gryphon’s mission to reshape the financial system. It offers advantages at every layer of the stack, optimizing dApps for distinct advantages and unlocking a new design space.
Staked $INJ as the Initial Supported Asset
Gryphon starts with staked $INJ as the initial supported asset for borrowing, providing users with a familiar and valuable asset to engage with Gryphon’s features.
Conclusion
Gryphon’s Vision for Injective Gryphon aims to become the leading on-chain lending market for staked assets within the Injective ecosystem. Seamlessly integrating liquidity across multiple chains without the need for cross-chain operations, Gryphon introduces a robust native money market to enhance staking strategies.
Experience More Capital Efficiency
Gryphon enables you to move your funds wherever they make the most sense for you, offering increased capital efficiency and flexible capital deployment.
Join Gryphon on Injective
Embark on a high-stakes adventure with Gryphon, where ancient myths meet modern strategy. Gryphon is set to redefine LSD staking on Injective, providing users with limitless possibilities for their staked assets.
#crypto2023 #CryptoEcosystems $INJ

Avely Finance has officially launched its liquid staking protocol on the Zilliqa mainnet.

The protocol and stZIL token are live in a beta phase and open to all users on the network, bringing more utility and flexibility to staking on Zilliqa and building a strong foundation for DeFi growth.

Find out more about Avely Finance's liquid staking protocol and stZIL token below:

https://blog.zilliqa.com/avely-finance-launches-liquid-staking-on-zilliqa-mainnet/

#Zilliqa #LiquidStaking #LSD #DeFi #defiprotocols #AvelyFinance

Liquity is set to launch a new stablecoin protocol, collateralized debt protocol (CDP), later this year. 

The stablecoin protocol will introduce LST support and dynamic user-set interest rates in bid to drive growth.

Liquity, the project behind the LUSD decentralized stablecoin, will launch a newly redesigned protocol, CDP, this year.

On Feb. 15, Liquity announced plans to launch a revamped collateralized debt protocol (CDP) seeking to address the shortcomings encountered by its current offering in recent years.

Introducing the next evolution of CDPs

For nearly three years, Liquity has stood as a cornerstone within DeFi. With over $4.5 billion in loans issued, and its status as the most forked stablecoin protocol, its impact is undeniable.

We share a steadfast commitment to the…

— Liquity (@LiquityProtocol) February 15, 2024

Liquity’s new protocol will introduce several new features, including support for liquid staking tokens (LSTs) as collateral, and new mechanisms designed to maintain LUSD’s peg to the dollar. 

Liquity will also debut dynamic “user-set interest rates” alongside a new liquidation system that will prioritize forced redemptions for users paying lower fees.

“We are strongly convinced that the introduction of this new DeFi primitive, centered on user-driven interest rates, not only enhances its direct appeal to users but also opens doors for developers and protocols,” Liquity said. 

See Also: Klaytn, Finschia Blockchains Merge To Become Asia’s Biggest Web3 Ecosystem In Abu Dhabi

“By choosing higher interest rates, borrowers can reduce the likelihood of being affected by redemptions, thereby aligning their individual incentives with the stablecoin peg dynamics of the system.”

Liquity said that users can protect themselves from liquidation redemptions in the event of heavy selling pressure by increasing borrowing rates. 

“The resulting higher fee payments serve as direct revenue to the Stability Pool, driving demand for the stablecoin which subsequently helps the stablecoin peg and lowers redemption risk,” it added.

Liquity said it aims to launch the protocol sometime around late Q3 2024.

Liquity’s Decline

Liquity said its “steadfast commitment” to decentralization has caused issues for the protocol in recent years.

Liquity has been unable to adapt to the evolving macroeconomic landscape driven by interest rate fluctuations, with the team concluding that its algorithmic rate mechanism has not remained competitive within the current economic environment.

Liquity also said its market share has declined as rival protocols introduced support for LSTs, which allow CDP users to earn staking rewards on tokens representing ETH deposits.

“The primary challenge has transitioned from scaling borrowing demand… in an environment with rising interest rates,” Liquity said. “This… has illuminated areas where our current system can improve, and highlighted opportunities for innovation within our codebase.”

While users have taken out more than $4.5B worth of loans from Liquity since its launch, LUSD’s market cap has declined throughout the majority of the protocol’s lifespan.

Launched in April 2021, LUSD sought to address many of the criticisms facing the long-standing incumbent and pioneering CDP, MakerDAO, which had alienated some users by abandoning its original ETH-only backing in favor of supporting an increasing number of highly centralized assets, such as USDC.

Liquity sought to address this by launching a CDP exclusively supporting ETH and decentralizing the protocol to prevent major changes from being made to the protocol in the future.

Just six weeks after launching, LUSD’s market cap had rocketed to an all-time high of nearly $1.56B, before slumping to $445.5M by August 2021, according to CoinGecko. 

See Also: More Than 1M Telegram Users Signed Up Using HERE, The NEAR Protocol’s Self-Custodial Wallet, In Just 10 Days

Its market cap then ramped up to $934B as of Nov. 30, 2021, but had steadily fallen to $160M as of June 2022.

LUSD’s capitalization again ramped up alongside rising ETH prices in 2023, but has fallen by half after posting a local high of $300M on Aug. 30, 2023 — currently sitting at $152M.

Disclaimer: The information provided is not trading nor financial advice. Bitcoinworld.co.in holds no liability for any trading or investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any trading or investment decisions.

#Binance #WRITE2EARN

The post Liquity To Launch New CDP Stablecoin Protocol In Late 2024 appeared first on BitcoinWorld.

A forthcoming stablecoin from Liquity, the company behind stablecoin LUSD, will feature borrower-chosen interest rates rather than its predecessor’s one-time fee and accept versions of staked Ether as collateral.

Stablecoins are among the most successful real-world applications of crypto technology, having gained a foothold in some developing economies. Crypto traders also like stablecoins because they let users transact entirely on the blockchain, while avoiding the volatility of other crypto assets.

The design is intended to address a common tradeoff made by crypto purists. Decentralisation typically comes at the expense of flexibility, which can hamper projects in the fast-changing crypto economy.

LUSD is no exception. Its supply has declined almost 48% since August, to just $150 million Thursday — a tiny fraction of Ethereum’s $79 billion stablecoin market.

Liquity’s new stablecoin is scheduled to launch in the third quarter of 2024. Letting investors and traders choose their own interest rate should give those who prefer LUSD an alternative to the current “fixed, inflexible system,” Colin Platt, Liquity’s head of product, told DL News.

A put option

Liquity lets users borrow LUSD against Ether. Unlike similar protocols, however, it eschews interest rates for a one-time 0.5% fee, no matter the size or duration of the LUSD loan.

In order to redeem LUSD for the Ether that backs it, any holder can deposit LUSD in Liquity and draw Ether from an outstanding loan, effectively closing a position on someone else’s behalf.

The first loans to get closed out are those with the lowest collateralization ratio, or the least Ether backing the borrowed LUSD.

While this creates an incentive to provide a large amount of collateral for a given loan, protecting LUSD from Ether’s volatility, it also means borrowers can lose their Ether without warning, along with any opportunity to profit from its appreciation.

A new stablecoin that lets borrowers select their own interest rates should address that, Platt said.

In order to encourage users to borrow at non-zero interest rates, the new Liquity protocol will use an interest rate-based redemption mechanism, rather than its current collateral-based mechanism.

“Essentially, if you decide to pay zero when you’re borrowing and I decide to pay one, you will get redeemed before I do, which means you lose your upside,” Platt said.

“In financial terms, this looks very much like a put option inside of a bond.”

This should encourage users to borrow more stablecoin for the same amount of collateral, according to Platt.

“There will be overlap with our existing product, but we’re also looking to kind of expand that to attract bigger wallets,” Platt said.

“We’ve been speaking with a lot of larger institutions that have looked at … this kind of redemption based on collateralization that we have, and said, ‘Well, that’s make the protocol less effective for us.’”

‘Most decentralised’

LUSD is one of four stablecoins to earn an “A” from Bluechip, a stablecoin ratings firm in the mould of Wall Street rating agencies such as Standard & Poor’s and Moody’s.

Bluechip called LUSD the “most decentralised stablecoin” and one of the safest to be issued and redeemed entirely on-chain.

It only accepts Ether as collateral, eschewing US dollar equivalents such as Treasuries, which are popular with much larger competitors USDT and USDC. To protect against Ether’s volatility, LUSD is over-collateralized; to mint $1 of the stablecoin, a borrower has to deposit Ether worth at least $1.10.

The Liquity protocol is also immutable — that is, even its developers can’t tweak it to adjust any parameters such as interest rates or the kind of collateral it will accept from people who want to mint LUSD.

“It requires no governance, management, or trust in counter-parties,” Bluechip wrote. “In designing such a stablecoin, the makers of LUSD have made a conscious decision to eliminate risks which stem from human judgement and embrace technical risks instead.”

But that decision has come at a cost.

The supply of LUSD has slowly declined since August. Meanwhile, the overall supply of stablecoins has increased since November.

Platt attributed the attrition to the rise of staking on Ethereum and changing market dynamics.

“Since we launched in 2021, we’ve seen kind of an explosion in growth and interest around liquid staking tokens,” Platt said. “a lot of users like to place those as collateral and borrow against them.”

With launch scheduled for the latter half of the year, the Liquity team will have time to secure several audits of the new protocol and its stablecoin. It’s necessary for a protocol that cannot be changed after it’s released, even to fix a critical bug.

“Our contract for LUSD is the 17th largest ETH holder in the world,” Platt said. “That would put us up on par with some of the larger US exchanges.”

While the team has teased a Liquity “v2″ since last year, their plans for the next iteration of the protocol have evolved since. The team has yet to settle on a name for the new technology.

“I think we have some cool options that really hit on why this thing is different, why it’s happening, and where it’s going.”

XT.COM, the world’s first socially infused trading platform, is thrilled to announce the listing of LSD(L7 Finance) on its platform in the Innovation zone (Web 3.0).  The LSD/USDT trading pair has been available starting from 2024-02-23 at 11:17 (UTC).

About LSD

LSD is a BEP-20 token deployed on the BNB blockchain with a max supply of 210 million tokens. LSD, the native governance token of the L7 Finance platform, symbolizes a paradigm shift in decentralized trading innovation. LSD plays a pivotal role in shaping the dynamics of the L7 ecosystem. In its essence, LSD embodies a multifaceted utility, fostering an ecosystem where users can actively participate, govern, and reap rewards.

The LSD token empowers users by offering a plethora of benefits within the L7 Finance ecosystem. Holders of LSD gain exclusive privileges such as discounted transaction fees on L7 Finance’s perpetual contract trading platform. Moreover, LSD holders enjoy participation in blue-chip project liquidity pool mining, enhancing their exposure to lucrative opportunities within the ecosystem. Additionally, LSD holders are entitled to priority access to airdrop rights and future product launches, ensuring they stay at the forefront of innovation and development.

Beyond its utility as a trading asset, LSD token serves as a catalyst for governance and participation within the L7 Finance ecosystem. LSD holders wield significant influence in major proposal voting rights, enabling them to shape the future direction of the platform. Furthermore, LSD holders with substantial holdings are bestowed with enhanced governance rights, fostering a democratic and inclusive decision-making process. By holding LSD, users become integral stakeholders in the evolution and growth of the L7 ecosystem, driving collective prosperity and innovation.

Albin Warin, CEO of XT.COM,  noted the significance of the L7 Finance project and its impact on decentralized finance. In his statement, Warin emphasized, “The inclusion of the LSD token on XT.com underscores our commitment to supporting innovative projects like L7 Finance that are driving the evolution of decentralized finance.” This endorsement reflects XT.com’s recognition of L7 Finance’s pioneering efforts in revolutionizing perpetual contract trading and its broader implications for the DeFi landscape.

About L7 Finance

L7 is a Web3 digital asset management and traffic aggregation platform. It is committed to providing digital asset investments and allocation services to investors worldwide. L7 has also built a comprehensive Web3 financial product ecosystem, leveraging extensive industry resources and a wide network and is actively engaged in project collaborations, community venture investments, and startup incubations for Web3 ecosystem development.

With infrastructure and core products that includes CEX, DEX, crypto cards, farms, and syrup pools, L7 carries out extensive cooperation and investments in over 100 countries and regions globally. Innovation-driven, L7 continuously expands its perspective and strategically develops within the global blockchain ecosystem.

Website: l7.finance

Twitter: twitter.com/L7_Global

Telegram: t.me/L7_Official

Discord: discord.gg/l7official

Medium: medium.com/@L7official

Youtube: youtube.com/@L7_global

About XT.COM

Founded in 2018, XT.COM serves more than 6 million registered users, over 500,000+ monthly active users, 40+ million users in the ecosystem, and an extensive portfolio of more than 800 tokens across  1000+ trading pairs. Since then, XT.COM crypto exchange has expanded its offerings by covering a rich variety of trading categories to provide a secure, trusted, and intuitive trading experience for its large user base. One such addition is crypto futures trading which includes USDT-M Futures and coin-M futures perpetual contracts, as well as copy trading that allows users to copy the trading strategies of top traders in real time with just one click. Additionally, the Futures Grid allows users to automate the buying and selling of futures contracts to make profits.

Website: www.xt.com

Twitter: twitter.com/XTexchange

Telegram: t.me/XTsupport_EN

Contact Details :

L7 Financecontact@l7.finance

XT Exchange

Bella Wei

Email address: Listing@xt.com

Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.

The post Discover the LSD (L7 Finance) Listing on XT.COM appeared first on Visionary Financial.