Liquid Staking Derivatives (LSD) in the Crypto Industry: A Guide to Lido Finance, Rocket Pool, SSV, ANKR, And FIS.
Liquid Staking Derivatives (LSD) is a new type of crypto asset that offers traders the opportunity to benefit from the rewards of staking without actually holding the underlying token. In this article, we’ll introduce the importance of LSD, the benefits of trading Liquid Staking Derivatives, and a quick overview of top LSD tokens available on Huobi.
🔹Why LSD is Important:
The crypto industry is constantly evolving, and Liquid Staking Derivatives represent a new and innovative way for traders to participate in the crypto space. By allowing traders to stake but not necessarily holding the token,, LSDs offer a flexible and convenient way for traders to benefit from the rewards of staking.
🔹Benefits of LSD:
There are several benefits of this asset class but today we will only highlight a couple of them below.
- Increased liquidity: LSD allows investors to earn rewards from staking activities without having to lock up their assets for a long period of time. This increased liquidity can provide traders with more flexibility and opportunities to trade and earn rewards.
- Higher returns: LSD can provide higher returns compared to traditional staking methods as the rewards are based on the price movements of the underlying assets in the liquidity pool. This means that traders can earn rewards not only from staking, but also from the appreciation of the assets in the pool.
🔹Top LSD Tokens Available on Huobi:
- Lido (LDO): Currently ranked #39 on CoinGecko with a market capitalization of $1,713,379,967, and a total value locked of $8.25b.
Lido is the current leader within LSD’s known as a decentralized platform that provides staking and liquidity services for decentralized finance (DeFi) applications. Lido’s goal is to provide a seamless and secure way for users to participate in the DeFi ecosystem and it has a huge market as of right now which is 74% per Defi Llama. It has no minimum for stakers as of right now.
LDO is the native token of the Lido ecosystem. The main use case of LDO token is for its holders to receive the governing rights as one LDO is counted as one vote. The more LDO tokens you hold, the more voting power you will have. Furthermore, the voting mechanism of the LDO token is adjustable and operable to other protocols.
2. Rocket Pool (RPL): Currently ranked #63 on CoinGecko with a market capitalization of $743,738,881, and total value locked of $629.48m.
Rocket Pool is a decentralized platform that provides staking services for Ethereum 2.0. It aims to make staking more accessible for smaller investors by pooling their resources and increasing their chances of being selected as a validator. With Rocketpool, users can earn rewards for participating in Ethereum 2.0 consensus without having to invest in expensive hardware or worry about the technicalities of staking.
RPL tokens are used by node operators to vote on protocol governance and serves as a form of insurance against staker and validator penalties or cuts. The RPL is subject to a 5% annual inflation rate, currently distributed as follows: 70% for node operators staking RPL.
3. SSV Network (SSV): Currently ranked #203 on CoinGecko with a market capitalization of $743,738,881.
SSV Network is a decentralized platform that provides a wide range of services for the DeFi ecosystem. The platform offers staking, liquidity, and lending services, and it is designed to provide users with an easy and convenient way to participate in the DeFi space.
SSV tokens are used to pay fees in the network. In addition, SSV acts as a reward mechanism: — Miners receive SSV from distributors to manage their validators and generate ETH rewards on their behalf.
4. ANKR Network (ANKR): Currently ranked #168 on CoinGecko with a market capitalization of $233,718,195 and total value locked of $164.62m.
Ankr Network is a decentralized platform that provides staking and cloud computing services. Ankr aims to provide a secure and scalable infrastructure for decentralized applications and services.
ANKR is an utility token with more than one use case. It can be used for staking, voting on governance proposals, and as payment for accessing services on the ANKR network, such as dApp and protocol deployment. ANKR also serves as a reward for stakers and network participants.
5. Stafi (FIS): Currently ranked #684 on CoinGecko with a market capitalization of $24,580,332.
Stafi is a decentralized platform that provides staking and liquidity services for the DeFi ecosystem. FIS is designed to provide users with an easy and convenient way to participate in the DeFi space.
The FIS token is utilized in the system for staking, transactions, and on-chain governance. As per the website, FIS provides security to the network by staking, paying for transaction fees on the StaFi chain, minting, and redeeming rTokens.
In conclusion, Liquid Staking Derivatives (LSD) represent a new and exciting opportunity for traders in the crypto industry. With the benefits of staking and liquidity combined, LSD allows for flexible and profitable trading strategies that were not possible before. As always “do your own research before investing, in any crypto digital asset.”
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1. Trading in digital assets comes with high risks due to huge price fluctuations. Users should be fully aware of the risks associated with digital asset trading and make prudent trading decisions.
2. Huobi announcements and information do not constitute investment advice, and Huobi will not bear responsibility or provide compensation for direct or indirect losses arising from trading decisions whilst relying on this information.