BNB is an open source liquidity protocol operating on Smart Chain. This protocol offers the ability to generate returns on collateralized crypto assets (BNB, ETH, stablecoins and other cryptocurrencies) and borrow its decentralized stablecoin, lisUSD. lisUSD is also referred to as "Destablecoin".
It uses and extends the proven MakerDAO model for a decentralized neutral and collateral-backed stablecoin. The protocol has a number of features including a dual token model (lisUSD and LISTA) and mechanisms such as instant conversions, asset collateralization, borrowing, yield farming. This protocol, which is unique to the BNB Chain ecosystem, plans to expand to many chains soon.
The protocol is built using Proof-of-Stake (PoS) rewards and yield-generating assets to position the lisUSD Destablecoin.
What is Destablecoin?
It is a new asset class in the crypto space and aims to define a more accurate term in the current stablecoin landscape. The “de-” prefix means decentralized – it does not refer to the price volatility experienced by assets like BTC. Destablecoins only use decentralized liquidated crypto assets as collateral and are not intended to provide absolute price stability to fiat currencies such as USD. While not exactly volatile assets, they do allow for some price fluctuations with changing reference rates and interest rate parities defined by the market.
What are the Differences Between Destablecoin and Stablecoin?
Stablecoins differ from the four main types of stablecoins currently on the market. These types of stablecoins are:
Fiat backed (BUSD)
Crypto-backed (DAI)
Algorithmic (USDD)
Commodity backed (PAXG)
Like other crypto-backed stablecoins, stablecoins use an overcollateralized model backed by crypto assets such as DAI. However, the main differences are:
It is completely decentralized. Crypto-backed stablecoins (e.g. DAI) use decentralized assets as collateral, while destablecoins (e.g. lisUSD) use decentralized assets and liquidated assets as collateral.
Destablecoins do not attempt to provide absolute stability with fiat currencies. All currencies are different and have varying reference rates, so price fluctuations should be considered a market-defined norm. Destablecoins also do not see absolute price parity with USD$1 as their primary goal.
Why Lista?
Many stablecoin protocols have become overly reliant on a fully collateralized or purely algorithmic model. Fully collateralized stablecoins carry custody risk or require over-collateralization on-chain. These models provide a tight constant with higher confidence than purely algorithmic designs.
Purely algorithmic designs offer a highly secure and scalable model that captures the early Bitcoin vision, but lack stability.
The decentralized crypto-lending model we have seen over the past decade has failed to democratize financial services. Most blockchain-based lending protocols promise low fees, fast transactions, and high returns, but still struggle with issues stemming from the “Stablecoin Trilemma” due to inefficiencies in their design. This trifecta forces stablecoin developers to sacrifice either decentralization, price stability, or capital efficiency.
The purpose of Lista DAO is to offer a solution to the capital efficiency problem of over-collateralized stablecoins. It allows users to invest their funds with a collateral debt position (CDP). With the combination of the functionality of the Liquid Staking MakerDAO model and the additional liquidity from LPs on DEXs, Lista avoids problems such as frozen funds (fiat-backed) or value lost due to price instability (algorithmic).
What Can Lista DAO Users Do?
Can collateralize BNB.
lisUSD can borrow.
lisUSD can farm.
It can pay off the debt (lisUSD + debt interest).
He can withdraw the collateral.
lisUSD may claim LISTA rewards for borrowing (soon).
Can participate in protocol governance using LISTA tokens (soon).
Rights and Benefits of LISTA Holders
LISTA token holders can submit governance proposals and vote to determine future feature upgrades and protocol parameters of the Lista DAO. This includes topics such as revenue pool allocation, adding new vaults, protocol parameters, and fee levels for ecosystem development and growth.
Voting rights are limited only to the properties of the Lista DAO and do not confer voting rights on the operation and management, subsidiaries or assets of the Lista DAO.
Economic Incentives
LISTA holders can earn LISTA token rewards for their participation and contributions to the protocol. These incentives are distributed as a result of activities such as users making deposits, staking transactions, making transactions and/or participating in management.
Users will earn additional LISTA based solely on actual usage activity and efforts on the Lista DAO.
Liquidity
LISTA token holders can trade LISTA tokens on DEXs or maximize their capital efficiency by placing them in farming pools. This can be used for a variety of financial strategies such as borrowing, compounding returns, and improving capital efficiency.
As a BEP-20 and ERC-20 compliant token, it has wide liquidity across various DeFi platforms.
Decentralization and Security
It operates on a decentralized platform and allows users to trade directly without intermediaries. This enables secure transactions without interference from central authorities.
Future Prospects of slisBNB
Liquidity and Yield Increase
slisBNB is a liquid staking token that gains value and returns in line with BNB's staking APR. This allows users to not only earn staking rewards but also earn additional returns by using this token on different DeFi platforms. In the future, slisBNB's opportunities to provide liquidity and generate returns are expected to increase. Users can borrow by using slisBNB as collateral, earn additional income by putting it in farming pools, and have wider usage areas in the DeFi ecosystem. @ListaDAO
Growth in the DeFi Ecosystem
It plays an important role in the DeFi ecosystem thanks to its wide usage area and liquid staking features. It is expected that more DeFi platforms will support and integrate slisBNB in the future. This will contribute to users seizing more return opportunities and increasing slisBNB's liquidity. Additionally, as the popularity of liquid staking tokens increases, the adoption and demand of slisBNB will also increase.
The Future of Decentralized Finance (DeFi)
The use of liquid staking tokens in the (DeFi) space is rapidly increasing. slisBNB is part of this trend, allowing users to manage their assets more effectively and generate returns. This will create new opportunities not only for individual users but also for institutional investors. #ListaNewEra
Technological Developments and Innovations
Lista DAO constantly follows technological developments and updates its protocol. slisBNB's future expectations include providing a more secure, efficient and user-friendly platform through technological innovations and improvements. With new features and integrations, slisBNB's usage areas and potential will expand.
Community and Ecosystem Support
The future success of slisBNB also depends on community and ecosystem support. The development and improvement of slisBNB will continue with the active participation and feedback of users. Lista DAO will support the future growth of slisBNB by increasing engagement with the community and providing solutions tailored to users' needs. $LISTA
