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Current developments in the liquidity Pledge sector in Cosmos

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The opportunity to deploy LSD will only expand as more DeFi dApps launch their products in the coming months.

原文标题：《 Cosmos 中的流动性质押板块发展到了什么地步？》

原文来源：深潮 TechFlow

During 2022, I covered liquidity pledge protocols in Cosmos, starting with Prism derivatives in January and continuing through a novel, multi-faceted token model on StakeEasy last month. The pace of innovation hasn't slowed down and 2023 has seen a number of exciting announcements and deals being rolled out, including: pSTAKE, Shade, Stride, BackBone Labs, and Quicksilver.

The purpose of this article is to provide an up-to-date overview of most liquid pledged derivatives (LSDS) currently available for Cosmos. More importantly, I'd like to check the dashboard to see how much these dApps, protocols, and blockchains are being used.

Cosmos 中的流动性质押板块发展到了什么地步？

LSD in Cosmos

Take a look at the images below to learn about the protocols that provide liquidity pledge in Cosmos and the names of all the tokens in circulation. As you can see, the field has become more crowded.

Cosmos 中的流动性质押板块发展到了什么地步？

Number of LSDs

The number of LSD tokens and the associated value are steadily rising as LSD tokens gain popularity and more Cosmos participants take advantage of their economic benefits. The following charts and tables summarize the current state of the LSD market in Cosmos.

Cosmos 中的流动性质押板块发展到了什么地步？

New features and opportunities

Cosmos Hub and other blockchain development teams across the ecosystem have built several exciting new technologies. In addition to the introduction of these advanced features, DeFi in Cosmos is growing rapidly and many lucrative opportunities are slowly emerging.

governance

Typically, when you deploy your tokens at DeFi, you give up the ability to participate in the governance vote. However, blockchains like Stride and Quicksilver will use interchain accounts to address this issue and enable users who pledge their assets to liquidity pledge providers to participate in governance as well.

The perfect example of this feature is the Stride team, which recently announced their update roadmap, as well as the phased rollout of their liquidity governance plan (see figure below).

Cosmos 中的流动性质押板块发展到了什么地步？

Quicksilver will launch its initial qAssets suite this month with STARS from Stargaze, followed by Juno from Juno Network, and OSMO by Osmosis.

After these first three, ATOM from Cosmos Hub will follow. The team announced the creation of a working capital pool for qAssets on Osmosis.

Liquidity pledge module

One of the most popular features is the Liquidity Pledge Module (LSM). This will allow users to transfer their delegation to the liquidity pledge provider without first unbinding.

I expect that allowing liquidity pledge providers to target alt-locked governance token minting LSD will significantly increase the use of vendor offerings and participation in Cosmos DeFi.

Please note that liquidity pledge providers do not currently offer this feature. A number of agreements have been announced that they will begin incorporating this feature immediately when the Liquidity Pledge Module (LSM) is released from Cosmos Hub.

Liquidity pool incentive

All agreements are actively building partnerships with exchanges around Cosmos to create new DeFi opportunities. Stride and Shade, for example, made a joint announcement about new liquidity pools for derived tokens at the launch of ShadeSwap, including:

StATOM - ATOM

StOSMO - OSMO

JUNO stJUNO -

StATOM - stOSMO

SHD - stATOM

stkdSCRT - sSCRT.

And some of these pools will get a double incentive.

The agreement also provides external incentives to reward participants for deploying their LSDS at DeFi, including Osmosis, Astroport, Crescent, KavaSwap, SiennaSwap, rDEX and Loop AMM. Liquidity pledge providers offering incentives include:

StakeEasy - SEASY

Stride - STRD

Crescent - CRE

Kava Kava -

StaFi Hub - FIS

Astroport - ASTRO.

For example, StakeEasy sets the high bar in terms of liquidity pool rewards, partnering with Loop AMM on the Juno network to pay triple rewards in the form of LOOP, SEASY, and bJUNO tokens. Additionally, StakeEasy LSD will feature prominently on the new Wynd DEX (also available on the Juno network).

Borrowing and borrowing

Liquidity pledge tokens will also be accepted as collateral by lending dApps. SiennaLend, for example, accepts seSCRT as collateral, and more collateral is in the works throughout the Cosmos loan agreement.

airdrop

Finally, these agreements are also airdropping their tokens. Stride has already begun airdrops, and other companies have announced upcoming airdrops of their governance tokens, including StakeEasy and Quicksilver.

For example, the Quicksilver team announced a continuous airdrop in which QCK tokens would be dropped to the founders of the new blockchain. The team also announced a participation rewards program where users can earn additional QCK tokens depending on their validator of choice. The goal here is to promote decentralization and incentivize delegation to validators with low voting power levels but high performance levels.

Rapid growth

The growth of liquidity pledges in Cosmos has reached a frenzied pace. Surprisingly, one of the first blockchains to offer LSD in the universe (Terra in 2021) still has an impressive set of options to choose from. Another protocol that claims to be the first to provide LSD in Cosmos is pSTAKE. The team's original product predates even IBC and was developed as an EVM-based solution. They just launched their latest product, a brand new stkATOM, which now fully supports IBC and interchain accounts.

Kava Blockchain's LSD, bKAVA, is a relative latecomer to the project, but one of the fastest rising, having launched less than three months ago. The blockchain offers higher revenue rewards to participants in its revenue and enhancement program.

A looming economic expansion

The opportunity to deploy LSD will only expand as more DeFi dApps launch their products in the coming months. Not only is the number of pledged tokens increasing, but the overall dollar equivalent of pledged assets is also rising due to the launch of new LSD products. This is especially impressive given the depressed token prices in this bear market.

The rising usage will also lead to an increase in daily transactions for Cosmos DeFi. This is a welcome development, as standard pledge and LP APR have been steadily declining across the ecosystem.

Finally, the positive impact of fee income growth will be critical to the economic health of ecosystems. And, assuming the protocol will stay true to their decentralized mantra, the steady growth of pledged assets will greatly help protect blockchain's business.