Announcing Partnership with Lido on Liquidity-as-a-Service
We are delighted to announce stETH-as-a-Service (stETH-aaS), and stMATIC-as-a-Service (stMATIC-aaS) in partnership with Lido.
For the first time, Ondo’s Liquidity-as-a-Service program is opening to community depositors, creating market leading protected yield opportunities on top of stETH and stMATIC.
DAOs participating in LaaS will be able to pay even less for liquidity as DAO tokens tend to be more correlated with stETH and stMATIC than with stablecoins, mitigating the impact of impermanent loss.
Lido is also providing some LDO rewards to bootstrap the offering and catalyze the expansion of stETH and stMATIC as base pairs across the Ethereum and Polygon ecosystems.
What is stETH-aaS?
stETH-aaS makes it possible for token issuers to increase the liquidity of their token within an ETH-based asset. As governance tokens are more correlated with ETH than with stablecoins, this new offering will greatly reduce the risk of impermanent loss for participating DAOs.
With stETH-aaS, a project deposits its token into the variable tranche of an Ondo liquidity vault with an agreed duration. stETH holders will deposit an equivalent value of stETH into the fixed tranche of the vault to create a liquidity pair. Ondo vaults then supply this liquidity to an AMM.
Upon expiration of the vault, Ondo withdraws the liquidity and returns stETH (principal + fixed APR) to the depositors. The participating DAO then receives all remaining returns in its native token.
This program delivers a powerful alternative to traditional liquidity mining programs, allowing DAOs and protocols to double their on-chain liquidity while removing sell pressure on their governance token.
Last, but not least, this new offering increases stETH utility, making it a base pair for token issuers using the service, and through new a new yield opportunity for stETH holders.
What is stMATIC-aaS?
We are also extending this partnership to Polygon through stMATIC-aaS!
Lido will launch community vaults via Ondo so their community can benefit from a similar arrangement on Polygon.
Ondo is officially becoming a multichain protocol, demonstrating its ability to adapt to market trends and meet our partners’ needs, such as Lido.
This partnership with Lido will deepen liquidity for stETH and stMATIC while reducing the impermanent loss risk for the variable tranche depositors and introducing new yield opportunities for Lido’s users.
What is stETH?
stETH is a token that represents staked ether in Lido, combining the value of initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are pegged 1:1 to ETH that is staked by Lido. stETH token balances are updated when the oracle reports change in total stake every day.
stETH is a rebasing token: every day, stETH holders see their stETH holdings increase with the APR.
To learn more: https://blog.lido.fi/steth-the-mechanics-of-steth/
What is stMATIC?
stMATIC is an ERC20 token that represents the account’s share of the total supply of MATIC tokens inside PoLido system. It is a non-rebasable token, which means that the amount of tokens in the user’s wallet does not change. Instead, the value of stMATIC changes over time, since the amount of MATIC tokens inside the protocol is not constant. stMATIC will be supported by a variety of DeFi applications across Ethereum and Polygon networks.
To learn more: https://polygon.lido.fi/
How to Participate?
Are you involved in a DAO that could benefit from LaaS with stETH or stMATIC? Make an introduction in the dao-to-dao Discord channel or send an email to partnerships@ondo.finance.
About Ondo
Ondo Finance is building a decentralized investment bank. We are building software that finds attractive investments across the traditional and DeFi landscape, repackages these assets into easily understood risk/reward offerings, and then matches and offers these assets to both institutional and retail investors. Join our community to stay up-to-date with our latest developments and product launches!
