Hydro Protocol
  • Overview
  • LSD&LSDfi
    • What is Liquid Staking?
    • What is LSDFi (LSD Finance)?
    • What is a Real Yield Asset (RYA)?
    • What are Real World Assets (RWA)?
  • Core Features
    • Liquid Staking Derivatives (LSD)
    • Auto-Compounding
    • Farming
      • The Early Access Farm (EAF)
  • Basic Features
    • Swap
    • LP Pools
    • Governance
  • Tokenomics
  • Milestones & Roadmap
  • User Guides
    • Your Journey: Mint to Farm
  • Contract Addresses
  • Audit
  • Technical Documentation
  • Additional Information
  • Legal Disclaimers
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  1. LSD&LSDfi

What is LSDFi (LSD Finance)?

PreviousWhat is Liquid Staking?NextWhat is a Real Yield Asset (RYA)?

Last updated 1 year ago

LSDFi (LSD Finance) is a DeFi concept that has been growing since 2023, focusing on creating a market driven by LSDs. Essentially, LSDfi refers to DeFi protocols that are built on top of liquid staking derivatives (“LSDs”). By offering additional yield-generating opportunities, LSDfi protocols allow LSD holders to put their assets to work and maximize yield. It is an entire ecosystem driven by the force of a standardized LSD asset.

For Hydro on Injective, the LSD is hINJ and they see it gain wide popularity as it increases utility opportunities across the Injective ecosystem’s other DeFi protocols like trading, borrowing/lending and RWAs.

Binance Research has a great article on this you can find more about on:

https://www.binance.com/en/blog/ecosystem/binance-research-lsdfi--liquid-staking-meets-defi-4258025573071146044