OctoLSD, what is it?

OctoLSD, the first LSD Liquidity aggregation and distribution protocol. Discover its features and direct access to its official website.

OctoLSD is the first LSD LAADP (LSD Liquidity aggregation and distribution protocol), which is governed by OctoDAO and aims to unlock the great potential of LSD.

OctoLSD, the basic information:

On one hand, OctoLSD concentrates LSD liquidity by aggregating various LSD assets and employs an LSD swap mechanism to achieve extremely low trading slippage. Additionally, OctoLSD supports the conversion of various LSD assets into a unified OcETH, making it more convenient for circulation.

On the other hand, OctoLSD distributes LSD liquidity to various DeFi projects through its Launchpad. For DeFi projects, utilizing the Launchpad can attract more LSD assets and attention. For users, providing liquidity to pools in the Launchpad will yield returns far greater than just LSD interest rates.

Additionally, OctoDAO will launch a stablecoin based on LSD called $LSDD and will continue to promote the use of OcETH (such as becoming a reserve asset for mainstream stablecoins like DAI), enriching the application scenarios of LSD. And various financial scenarios will be extended in the future based on the Ethereum Benchmark Interest Rate and bond theory.

Ethereum Benchmark Interest Rate

Ethereum transitioned from a Proof of Work (PoW) consensus algorithm to a Proof of Stake (PoS) consensus algorithm. This transition is known as Ethereum 2.0 and is widely regarded as a milestone in the cryptocurrency market. In Ethereum 2.0, stakers are able to participate in the network’s consensus process by locking a certain amount of ETH and earning rewards from it. This locking process is called staking, hence Ethereum 2.0 is also known as « ETH staking« .

It is worth mentioning that this project introduces a powerful and innovative concept: The Ethereum reference interest rate.

The Ethereum staking yield (approximately 5%) can be roughly regarded as the benchmark interest rate or bond yield in traditional finance. Meanwhile, various LSD assets can be seen as certificates of deposit or bond assets issued based on ETH collateral.

The Ethereum Benchmark Interest Rate brings basic interest rate support to Ethereum’s DeFi ecosystem. Its influence on DeFi will be no less than the benchmark rate in traditional finance.

$Octo War

The $Octo is a transferable ERC20 token, designed to capture the value of the OctoLSD protocol.

LSD Summer is coming. More and more DeFi apps will issue their own LSD or compete for LSD liquidity. And OctoLSD can help them attract LSD & ETH liquidity very well.

DeFi protocols that want to get more LSD or ETH liquidity can create their own LaunchPad Pool on OctoLSD, and strive for higher APR ($veOcto rewards) for their own Pool, so as to attract more OcETH holders Someone will provide liquidity.

Voting is required for both « adding new pools » and « striving more $veOcto rewards for pools ». And more $veOcto means more voting power(or bribery $veOcto holders).

This will cause a scramble for $veOcto and its governance value, which is called Octo War (just like Curve War). It is essentially a LSD&ETH liquidity war.