What is LSDFi (LSD Finance)?

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