Demex Partners with Drop, a Liquid Staking Protocol for the Interchain

Demex is thrilled to announce a strategic partnership with Drop, a pioneering cross-chain liquid staking protocol. This collaboration promises to breathe new life into the Interchain and significantly expand DeFi opportunities for traders and investors on Demex.

Introducing Drop: Breathing New Life into the Interchain

Revolutionizing Liquid Staking

Drop is at the forefront of liquid staking innovation. Built on Neutron, a Cosmos app chain secured by Interchain Security (ICS), Drop utilizes CosmWasm smart contracts and the Inter-Blockchain Communication (IBC) protocol to offer secure and scalable liquid staking services. This sophisticated technology ensures that Drop can seamlessly integrate with various networks while maintaining high levels of security.

Industry Expertise

Drop's leadership team includes former contributors from Lido Finance and P2P Validator, bringing a deep well of experience to the project. As a member of the Lido Alliance, Drop is uniquely positioned to enhance liquid staking within the Interchain ecosystem. This alliance marks a significant step in Drop's mission to integrate Lido’s stETH into the broader Interchain network, expanding the utility and reach of liquid staking assets.

Drop’s Alliance with Lido: A Strategic Integration

Expanding stETH's Reach

As part of the Lido Alliance, Drop will play a crucial role in integrating Lido's stETH into the Interchain ecosystem. This integration will enable stETH, a major liquid staking token, to interact seamlessly across multiple blockchains within the Cosmos network. The move aims to enhance the liquidity and usability of stETH, providing users with more opportunities to leverage their stETH holdings in various DeFi applications.

Collaborative Innovation

The collaboration with Lido aligns with Drop’s vision to drive innovation in liquid staking. By integrating stETH, Drop will facilitate its use in a variety of DeFi protocols and applications, thereby expanding its utility and enhancing the overall liquidity of the Interchain ecosystem. This partnership underscores Drop’s commitment to advancing the DeFi landscape and providing users with cutting-edge financial tools.

How Drop Works

Seamless Cross-Chain Integration

Drop’s architecture supports the integration of new networks and assets compatible with IBC, allowing for efficient expansion with minimal risk. This capability ensures that Drop can rapidly onboard new assets and networks, enhancing its liquid staking offerings.

Automated Validator Management

Using Interchain Queries (ICQ), Drop retrieves on-chain performance metrics in a trust-minimized manner. This automation enables Drop to focus on curating top-tier validators and planning enhancements like Scaling Delegations, which improve security and performance.

Robust Ecosystem

Drop’s liquid staking tokens (dAssets) will integrate with a range of DeFi protocols on Neutron, including Demex, Duality, Astroport, Mars, Levana, Apollo, Fission, and Amulet. This broad integration offers users advanced DeFi strategies, such as delta-neutral or leveraged staking.

Background of Drop

A Legacy of Innovation

Drop builds on the vision of Lido for the Interchain, developed by Hadron Labs and supported by the Drop Foundation. With the economic security of over $2 billion ATOM restaked on the Cosmos Hub, Drop offers a secure and robust operational foundation.

Broad Ecosystem Integration

Drop’s integration into major infrastructure and distribution channels like the Skip API and Nexus bridge ensures easy access to Drop’s liquid staking tokens from various networks and applications.

Demex: The DeFi Hub

Nitron Money Market

Nitron stands out as the most comprehensive money market in the Cosmos ecosystem, with a constantly evolving roster of new assets and ongoing incentive programs. This ensures that users have access to a diverse range of lending and borrowing opportunities, coupled with regular incentives to maximize their returns.

Strategic Partnerships

Demex has established partnerships with leading liquid staking providers, including Stride, MilkyWay, Stafi, Lido, Persistence, and Eris, reinforcing its role as a DeFi hub.

Incentives and Advanced Features

Demex offers regular incentives for users to earn compounded yields and attractive APYs. Features like E-mode enhance capital efficiency by providing higher loan-to-value (LTV) ratios for selected assets. On-chain alerts via email and Telegram keep users informed and prompt timely actions.

Partnership Highlights

New Listings and Incentives

Demex will soon list Drop’s liquid staking tokens (dAssets), introducing fresh opportunities for traders and investors. The partnership will also include attractive incentives to encourage the adoption and use of these new assets.

Enhanced Leveraging Strategies with E-Mode

A key feature of this partnership is the integration of Efficiency Mode (E-Mode) for Drop’s dAssets. E-Mode enhances capital efficiency by increasing LTV and Liquidation Threshold when borrowing assets within the same E-Mode category.

For example, enabling E-Mode for dATOM allows users to achieve an LTV of up to 90%. Users can then borrow ATOM against their dATOM, mint more dATOM with the borrowed ATOM, and repeat the process to establish a leveraged DeFi position. This strategy maximizes yield and leverages DeFi opportunities effectively.

The TLDR

Demex is partnering with Drop to expand DeFi opportunities. Drop, a liquid staking protocol built on Neutron and supported by the Lido Alliance, will integrate its assets with Demex. This partnership will also introduce Efficiency Mode (E-Mode) for Drop’s assets, enhancing capital efficiency and borrowing power. Demex will continue to update its asset listings and offer ongoing incentives to users. This collaboration aims to provide more tools and opportunities for optimizing DeFi strategies and maximizing returns.