Lodestar Finance: Looking Ahead

Lodestar Finance
2 min readSep 3, 2022

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Lodestar Finance is bringing collateralized staked assets to the Arbitrum ecosystem. This article aims to provide some insight into our aspirations and the inspiration behind building the protocol, along with a number of Arbitrum communities we intend to integrate with. The majority of this article describes the services we will provide along our post-launch roadmap.

What are our overarching goals?

Yield bearing staked assets are a fantastic DeFi primitive, and many of these such tokens are appearing across the Arbitrum ecosystem. Unfortunately, these assets lack access to critical DeFi services such as borrowing and lending.

The primary differentiator of Lodestar Finance from traditional money market protocols is to allow users to collateralize liquid staked, yield bearing assets and leverage them in Lodestar’s decentralized money markets.

In addition to unlocking the liquidity of staked assets, Lodestar Finance aims to invigorate stablecoin suppliers with new and dynamic yield strategies.

Why are we setting out to do this?

The inception of the protocol stemmed from our desire to unlock the liquidity of our own staked Arbitrum assets for use in a wider range of DeFi applications. We explored the Arbitrum ecosystem looking for services that would fulfill our needs but found none. So we decided to build it ourselves.

What projects/ecosystems are we targeting?

While there is no shortage of great DeFi protocols across the Arbitrum ecosystem, a few standouts come to mind.

Plutus DAO

Plutus DAO has proven to be one of the most interesting DeFi platforms in the Arbitrum ecosystem. We are excited to offer plvGLP and plsDPX as two of our flagship offerings in the Lodestar liquid staked markets.

MAGIC & Magic Dragon DAO

Everybody loves MAGIC. MAGIC will be able to be used as collateral in the money markets. Magic Dragon DAO is a major player in the Harvester Wars and, being personal fans of the Treasure ecosystem as a whole, we are thrilled to be offering support of drMAGIC as one of the first Lodestar liquid staked markets.

Dopex

Booba? CEO Orders. DPX will be able to be used as collateral in the money markets, and there is potential to support rDPX and rDPXUSD in the future.

GMX

GMX is a protocol that needs no explanation. We plan on providing support for GMX and GLP in the money markets in the near future.

Have an idea for an ecosystem that could synergize with our goals? Reach out to us through our socials!

Twitter: https://twitter.com/LodestarFinance

Discord: https://discord.gg/6BVgGn4VTg

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Lodestar Finance

An algorithmic lending and borrowing protocol built on Arbitrum.