Rise of Liquid Staking
Liquid staking has been gaining significant attention and making waves in the crypto ecosystem, particularly among Proof-of-Stake chains. It introduces a fascinating concept: minting a liquid staking derivative (LSD) that represents the staked asset in a liquid form. This derivative offers the best of both worlds by unlocking the liquidity of the staked asset for trading and other activities while allowing the underlying asset to continue earning staking APY (Annual Percentage Yield). Essentially, users can enjoy the benefits of staking rewards without sacrificing liquidity.
The introduction of liquid staking has had a positive impact on the market, contributing to a more active and vibrant space. Liquid staking has boomed amongst the most popular chains such as Ethereum, Arbitrum, Cosmos, and more.
Liquid Staking Index
The liquid staking index currently comprises the governance tokens of Lido Finance (LDO), Frax Finance (FXS), Rocket Pool (RPL), Ankr Network (ANKR), Stride Zone (STRD), and StaFi Protocol (FIS).
The underlying tokens are weighted based on their market cap, average 30-day volume, volatility, etc. The image below shows the current ratios as of May 2023. In the future, the index composition may be re-evaluated to ensure that the index is properly calculated according to the real-time data. Governance tokens may be also added or removed to the index based on the liquid staking trends.
For more information on Carbon's LSI, read this article here.
LSI's potential to outperform BTC and ETH
Trading LSI-PERP on Demex
Currently, the LSI is only available for trading on Demex. Demex has launched the LSI-PERP market, now users can go long or short with upto 5x leverage! This perpetual market is denominated in $USD.
Trading on Demex is easier than ever: