Bracket is launching a platform for Liquid Staked DeFi
Where we come from
Bracket Labs started in 2021 by creating DeFi derivatives protocols. In 2023, we were recognized by Binance and invited to join the Binance Labs Incubator, Season 5. Out of nearly 900 applicants, we were overall runner-up in the Build-the-Block competition and the only DeFi finalist.
As Ethereum upgraded from proof-of-work to proof-of-stake, Liquid Staked Tokens (LSTs) emerged as an easy way for users to stake the network and receive block rewards. As a consequence, LSTs created a new class of high-quality collateral. Because we designed our protocols to accept any asset for payment and settlement, it was only natural to consider an expansion into denominating markets in LSTs.
Enter LRTs
Soon, the market found opportunities to utilize LSTs to extend ETH’s economic security to other off-chain services. As a result, Liquid Restaking emerged as a category, and derivative products like Liquid Restaking Tokens (LRTs) were issued to provide the ETH block rewards, restaking rewards. LSTs and LRTs are more productive assets than $ETH because they are constantly accruing rewards.
The new era of DeFi belongs to Liquid Staked Tokens.
Why a platform for Liquid Staked DeFi?
DeFi platforms like Pendle paved the way for LST/LRT degens to “stack” rewards, farm points, and returns atop the ETH block rewards. However, users now bear the burden of having to choose the best LST flavor of the day and figure out how to restake into earning opportunities. This is complicated by inconsistent DeFi utility for each LST/LRT asset.
To solve these issues, Bracket is building a platform for Liquid Staked DeFi that features a blended composite of LSTs to enhance collateral efficiency. Bracket creates passive opportunities and active trading opportunities to put LSTs/LRTs to work.
- Harmonize collateral into $brktETH, creating fungibility across supported LST/LRT assets
- Move between passive and active strategies that use a consistent and familiar UI
- Margin lending with collateral management across all strategies
- Performance will be calculated consistently across strategies to maximize comparability
- View balances consolidated across all strategies
- Where active managers are involved, protocols and on-chain strategies will be controlled, transparent, and vetted.
A new asset at the center, $brktETH
To provide an improved user experience in Liquid Staked DeFi, Bracket is introducing a new asset called $brktETH. $brktETH is the way to access strategies on the platform.
$brktETH is backed by a composite of LST/LRT deposits sitting in a transparent, on-chain treasury and provides:
ETH rewards + Supported LRT Points + Bracket Points + LSTfi Earning Opportunities
Why $brtkETH?
- Blended composite LST/LRTs creates fungibility in the underlying collateral
- Diversifies exposure to any one treasury asset
- More capital efficient due to the fungibility
- Stack rewards
- Put $brktETH to work in strategies
Note: $brktETH is not required to use Margin Trading/Swaps
Phased launch program
Soon, Bracket will roll out a phased program to launch $brktETH to power the Bracket Platform:
We are excited to provide more details as we get closer to the start of
Phase I, where eligible users will be able to stake their LSTs in an incentivized escrow to receive $brktETH in Phase II.
Note from our CEO
I believe that DeFi is the natural direction of the financial industry. For a while, it was just a blurry image of what could be. There were little pieces here and there, disconnected apps and services without much tying them together. Maybe it’s my stronger glasses prescription, but in 2024, the field has never looked greener; mature DEXs provide deep liquidity, lending markets are modular and more adaptive, liquid staked tokens provide passive rewards for holders, real-world assets are getting tokenized on public networks, and the list goes on. Users are looking for opportunities to beat inflation, beat their best speculative trade, and fuel their earnings for the long term. As a user-focused team, we are constantly looking for ways to meet these market demands.
Those who were around in 2017 remember when a global permissionless settlement computer was merely a dream. Ethereum was in its infancy and the first teams were building basic DeFi utilities on-chain. I remember gathering with the Consensys team in a stuffy Brooklyn loft to hear Joe Lubin speak about what could be. It was an exciting time. There was real energy in the room and everyone was excited to build even though the future was hazy. Gathering with my team at Bracket, I feel the same excitement now about the future of DeFi and liquid staking. But for the first time, the image has sharpened. The UX, collateral quality, and DeFi utilities are all there to create a powerhouse LSTfi platform…and we intend to build it.
— Mike Wasyl, CEO & Co-Founder @ Bracket
Given our domain expertise and product capabilities, Bracket is the right team for the job:
- We have extensive experience building complex, on-chain derivative products that have been successfully in production for over 18 months
- Liquid Staked DeFi is a natural extension of the products we have already created
- We have deep experience in Web3 dating back over 5 years
- We are a doxxed team with known reputations who have worked together for many years
- Deep TradFi experience
- Backed by Binance Labs
Keep an eye out for:
- Details on the Bracket Points Program
- Phase I — Details on Staking Escrow
- Phase II — Details on Bracket’s Liquid Staked DeFi Platform
- Phase III — ?
- Updates on partnerships, compatible assets, and more …
To stay on top of our progress, please join our Discord and follow us on X.
Discord: https://discord.gg/bracket
Twitter: https://twitter.com/bracket_fi
— Bracket Team
