Introducing LISA: The Goddess of Liquid Stacking

LISA
LISALab
6 min readMar 26, 2024

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Key Highlights:

  • Flexibility Unlocked: LISA transforms stacking with the flexibility to earn yields without locking up your exposure.
  • Dual-Token Advantage: LiSTX, with its rebasing growth, and vLiSTX, increasing in value from rewards, ensure liquidity and adaptability, keeping LiSTX at a 1:1 STX ratio.
  • Maximized Efficiency: LISA’s pooled STX across multiple pools allows for flexible position adjustments, enhancing investment efficiency.
  • Collaborative Strength: LISA leverages the combined expertise of top Stacks builders for diverse stacking strategies and collateral opportunities.
  • DeFi Expansion: LISA’s integration with ALEX broadens DeFi service access, cementing its role in Bitcoin’s DeFi ecosystem.

Imagine this: You’ve ventured into the world of STX Stacking, collecting rewards and watching your treasury grow with an APY of approx. 7–10%. With Stacking one of the few native yield opportunities available on Bitcoin, it’s a savvy strategy. But here is the catch — those STX are locked for ~ 2 weeks, out of reach for other uses. This means you, the stacker, have traded liquidity for yield.

As you observe the thriving DeFi scenes on Bitcoin, teeming with opportunities, you ponder the potential of your assets. What if your stacked STX could be more flexible, more dynamic?

Enter LISA — a beacon in the liquid stacking space, designed to weave flexibility and dynamism into your investment tapestry. LISA elevates Stacking by freeing your STX enabling participation in lucrative farming pools or using them as collateral for stable coin loans, all while your STX continues to earn.

LISA’s Distinct Advantage

LISA, a collaboration between ALEX, Ryder’s Fast Pool, and Xverse Pool, leverages unparalleled engineering and operational excellence, setting a new standard within the Stacks ecosystem. Its key advantages include:

  • Enhanced Pool Integration and Flexibility: LISA integrates multiple stacking pools like Fast Pool and Xverse Pool, boosting efficiency and diversification. This setup provides stackers with flexibility, allowing direct stacking above certain minimums or delegation below them. Unlike protocols that restrict users to a single pool, LISA offers a broad network of operators, enhancing effectiveness and using STX as collateral for other protocols.
  • Broadened DeFi Opportunities: Through seamless integration with ALEX, Bitcoin’s premier finance layer, LISA significantly expands the range of DeFi services available to users, reinforcing its foundational role in Bitcoin’s DeFi landscape.
  • Innovative “Rebase” Tokens: LISA introduces “rebase” tokens to Stacks, inspired by Lido’s success. These tokens dynamically adjust their supply to mirror their underlying assets’ value, facilitating efficient yield capitalization and flexible position management with minimal slippage. This breakthrough enhances LISA’s token liquidity and market stability, proving indispensable for DeFi users at every experience level.

LiSTX and vLiSTX: The Dual Tokens That Liberate Your STX

LISA offers two liquid stacking tokens: LiSTX uses a rebasing mechanism for balance growth, while vLiSTX appreciates in value as stacking rewards accumulate. This design ensures both liquidity and adaptability, maintaining LiSTX at a 1:1 ratio with STX, whereas vLiSTX’s value diverges over time due to rewards.

1 LiSTX = 1 STX

Locking STX grants users LiSTX, which grows in the balance to reflect stacking yields. LiSTX can be traded at any time: It can be redeemed for STX at face value or traded against STX and other assets on supporting exchanges.

Both LiSTX and vLiSTX adhere to the SIP-10 standard, yet they distinguish themselves in how rewards are accumulated. LiSTX rebases to increase balance, while vLiSTX’s balance remains constant as its value grows from stacking rewards. Users can interchange LiSTX and vLiSTX via a smart contract, ensuring sharing liquidity.

LiSTX’s rebasing keeps its value aligned with STX, enabling efficient trading with minimal slippage. In contrast, vLiSTX, expected to diverge in value from STX due to rewards, may experience higher slippage when traded.

Maximize Your Stacking Efficiency with LISA

The traditional stacking model often forces stackers to miss an entire cycle if they decide to adjust their locked STX, resulting in significant opportunity costs due to the two-week cycle.

LISA solves this by pooling STX from users and collaborating with various stacking pools, enabling a more efficient and flexible management system than individual stacking allows.

For stackers, this means greater freedom in managing your investments. With LISA, adjust your stacking positions without major opportunity costs, ensuring your STX is always working efficiently for you.

Summary: A New Era of Stacking

LISA redefines the Stacks ecosystem, merging the expertise of ALEX, Ryder’s Fast Pool, and Xverse Pool to unlock unparalleled stacking flexibility and liquidity. By introducing dual tokens, LiSTX and vLiSTX, LISA liberates STX holders, enabling participation in a broader DeFi landscape without sacrificing yield. LISA not only enhances efficiency and diversification across multiple stacking pools but also integrates seamlessly with ALEX, expanding the DeFi opportunities available to users. With LISA, stacking is no longer a rigid commitment but a dynamic strategy, empowering stackers with the freedom to optimize their investments and navigate the evolving world of Bitcoin DeFi with confidence.

Appendix: The Architecture of LISA

LISA operates on three fundamental components managed by LISA DAO:

  1. LiSTX Mint Factory: The primary interface for users to mint or burn LiSTX/vLiSTX, separating logic from data storage in the LiSTX Mint Registry for future adaptability.
  2. LISA Vault: Stores STX from users, available for LiSTX redemption, and allows Strategies to deploy STX for stacking.
  3. Strategies: Smart contracts for specific stacking strategies, managed by Strategy Managers who allocate STX across different stacking pools each cycle.

LiSTX Mint Factory Overview

The LiSTX Mint Factory serves as the primary smart contract interface for LISA users looking to mint or burn LiSTX/vLiSTX. It executes the minting/burning logic, while the LiSTX Mint Registry securely stores the corresponding data. This division ensures the system’s adaptability and data integrity over time.

Minting Process:

  • Requesting LiSTX: Users submit a mint request and receive an NFT ticket, transferring the specified STX to the LISA Vault. To be included in the next stacking cycle, requests must be confirmed 300 blocks before the next cycle’s preparation stage starts; otherwise, they’re deferred.
  • Finalizing Mint: Minting finalizes 432 blocks after the cycle begins, exchanging the NFT ticket for LiSTX.
  • Revoking Requests: If conditions allow (unlocked STX are available and not committed elsewhere), users can revoke their requests, recovering their STX. Revocation is not possible if the STX are allocated for strategies or outstanding burn requests.

Burning Process:

  • Requesting Burns: For burning LiSTX, users receive an NFT ticket and transfer LiSTX to the LISA Vault, with rewards continuing to accrue during the wait.
  • Finalizing Burns: Burns depend on unlocked STX availability in the Vault and may proceed immediately or be queued.
  • Revoking Burns: Users can revoke burn requests at any point, cancelling the ticket and retrieving their LiSTX.

LiSTX and vLiSTX

Users can freely convert between LiSTX and vLiSTX, ensuring flexibility and liquidity.

LISA Vault Functions

The LISA Vault stores STX deposited by users, making them accessible for LiSTX redemption. It allows Strategies to access these STX for deployment across its network. Conversely, Strategies are structured to only return STX to the LISA Vault, ensuring a secure and closed loop.

Strategies

Strategies are the smart contracts that implement particular stacking strategies. Each strategy may have one or more “members” which join and delegate STX to different stacking pools. Strategies are managed by Strategy Managers, who decide the allocation of STX across the members of its strategy for each cycle.

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