What is LSTFi (LST Finance)?
Last updated
Last updated
LSTFi (LST Finance) is a DeFi concept that has been growing since 2023, focusing on creating a market driven by LSTs. Essentially, LSTfi refers to DeFi protocols that are built on top of liquid staking Tokens. By offering additional yield-generating opportunities, LSTfi protocols allow LST holders to put their assets to work and maximize yield. It is an entire ecosystem driven by the force of a standardized LST asset.
For Hydro on Injective, the LST 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: