LSDFi Protocol Agility: Two weeks after launch, TVL is close to $500 million, and the token has soared 20 times

Produced by | Odaily Planet Daily
Author | Qin Xiaofeng (Welcome to report and exchange)
Last Thursday, Ethereum completed the Shanghai upgrade and opened the staking withdrawal function. The expected selling pressure did not come, and the market's enthusiasm for participating in ETH staking became higher. According to token.unlocks data, since the upgrade, the Ethereum network has added 468,000 ETH to its staking volume - before the upgrade, the average weekly increase was only about 100,000 ETH.
If this trend continues, more LSD (liquidity staking derivatives) protocols will be born, promoting the arrival of LSD Summer. At this time, the most core needs for LSD Holders of the new protocol are two: one is the liquidity of LSD tokens; the other is the value-added scenarios of LSD tokens - staking, lending, interest-bearing, etc. The birth of Agility Protocol is to solve these core problems.
Agility is a decentralized financial protocol based on Ethereum. Its vision is to unlock liquidity for LSD holders, explore more LSD trading scenarios, and provide deep liquidity for other LSD-related protocols. It is committed to becoming a pioneer and core contributor to LSDFi and LSD Summer.
Data shows that in the two weeks since its launch, Agility TVL has reached nearly $500 million ($462 million), and the price of its governance token AGI has risen from the initial offering price of $0.04 to the current $0.96, an increase of 2,300%, with a circulating market value of $15.47 million.
(1) LSD liquidity distribution platform + aUSD trading platformThe common LSDs on the market are as follows: stETH and wstETH issued by Lido, rETH issued by Rocket Pool, frxETH and sfrxETH issued by Frax, and cbETH issued by Coinbase.
（aLSD and aETH）
Agility also supports ETH staking and generates aETH. In addition, it also accepts three types of LSD staking, stETH, rETH and frxETH, and generates aLSD (astETH, arETH and afrxETH). After users obtain aETH and aLSD, they can choose to: (1) directly hold aLSD and obtain corresponding LSD staking income; (2) use aLSD or aETH to participate in the LSD liquidity distribution system, provide liquidity for the selected vault and obtain income; (3) pledge aLSD or aETH to mint aUSD for trading or hedging.
What is the LSD liquidity distribution system? This is a liquidity capture channel opened by the Agility protocol for various LSD protocols, which can help them improve their initial liquidity. Each LSD strategy vault serves a different protocol, for example: providing liquidity for the rETH-WETH trading pair on Aura... At this time, users holding arETH can deposit their aLSD assets into the vault to obtain income, including three types: 100% of the income generated by staking LSD itself; 30% of the strategy vault income; esAGI token rewards. The initial strategy vault is created by the protocol or partner, and the creation of new vaults will be determined by the Agility DAO thereafter.
(LSD Distribution System)
What is the esAGI token? The Agility protocol uses esAGI tokens as rewards to distribute to various vaults. It is generated by staking the governance token AGI token and has voting rights. Users can vote to determine the number of rewards each vault can receive in each period; more esAGI rewards will attract more LPs to provide liquidity for the vault.
Therefore, for those protocols that have liquidity needs for LSD or ETH, they can bribe esAGI token holders to vote for their own vaults - esAGI token holders can get 70% of the returns of the selected strategy vault plus bribes. (Odaily Planet Daily Note: This gameplay is actually borrowed from Curve's veCRV vote bribery.)
Another important design of Agility is the aUSD trading system. aUSD is an over-collateralized stablecoin. Users can mint aUSD by mortgaging aLSD or aETH, and can redeem the corresponding assets by repaying all debts; the initial collateral ratio is set at 130%. When the collateral ratio is lower than 110%, the protocol will liquidate the user's position with a liquidation fee of 1%.
(aUSD generation and usage scenarios)
After users obtain aUSD, they can trade or hedge, such as going long/short on ETH, GMX, GNS, Pendle, Gear and other assets on the Agility protocol, going long/short on LSD yield, trading options, etc. According to the plan, Agility will build its own aUSD trading ecosystem or attract developers to participate to increase the application scenarios of aUSD.
In the official document, Agility describes itself as "both an LSD liquidity distribution platform and an aUSD trading platform." It should be noted that the LSD liquidity distribution system and the aUSD trading platform have not yet been officially launched.
(2) Fair launch of AGI tokenAGI is a token issued for the protocol, with functions such as governance, rewards, and liquidity guidance. The total supply is 1 billion, of which 500 million have been destroyed in the proposal on April 15; of the remaining tokens, 88% are used for liquidity incentives, 10% enter the treasury, 1% are used for initial liquidity, 1% are used for marketing, and the team share is 0. Marketing fees are deposited in the Agility Treasury address supported by Safe: 0x11c0b36a6d5DB7AD79e8E19Ad9734f74006023AB, mainly used for cooperation with CEX (including liquidity and market makers) and smart contract design and vulnerability maintenance.
On April 7, AGI was officially launched on 1inch/airswap, with a sales volume of 3 million and a unit price of US$0.04. Over the past 10 days, the price of AGI has risen from US$0.04 to the current US$0.96, an increase of 2,300%, with a market value of US$15.47 million.
On April 10, Agility launched the "Fair Launch" to distribute AGI tokens among participants in the Agility ecosystem, absorbing nearly $500 million in deposits within a week. Specifically, Agility opened five mining pools for liquidity mining, including: ETH, stETH, rETH, frxETH four single-coin mining pools and AGI-WETH LP mining pool, and later added ankrETH mining pool. Of course, the AGI-WETH LP mining pool has the most distributed rewards and the highest rate of return - 3800% annualized. The returns of other mining pools are as follows:
According to the project roadmap, Agility plans to complete the construction in three stages: the first stage, Genesis Liquidity Farming - accumulating LSD and ETH liquidity; launching the aUSD module and incentivizing aUSD-USDC liquidity; the second stage, launching the LSD strategy treasury, launching the Perp and Yield Exchange of the aUSD trading ecosystem; launching the LSD liquidity allocation ecosystem; the third stage, improving the aUSD trading ecosystem, attracting external developers to build more trading scenarios, improving the LSD liquidity allocation ecosystem and launching the Bribe (vote bribery) function.