- The purpose of YieldNest’s new liquid restaking token, ynLSDe, is to generate extra yield by staking on platforms that support liquid staking, such as Lido, FRAX, Origin Protocol, and Mantle.
- The native restaking token, ynETH, was previously made available by YieldNest. It allows users to access a trading strategy overseen by the YieldNest risk management team.
In an effort to capitalize on the expanding market for liquid staking derivatives, restaking firm YieldNest is introducing a new coin. The technology, known as ynLSDe, aims to provide extra yield to users that have ether staked on well-known decentralized liquid staking platforms as Lido, FRAX, Origin Protocol, and Mantle.
Tokenized representations of staked assets, known as liquid staking derivatives (LSD), are applicable to a number of DeFi protocols. Staked coins are often non-tradable, as they are awarded to users for their contributions to the security of the Ethereum network. By producing a proxy token that may be used elsewhere while the underlying ETH is still staked, LSDs get around this.
By allowing users to take their LSD tokens and utilize them once more to secure other decentralized services, restaking expands on this process. Similarly, ynLSDe advances this tendency of restaking. According to DeFiLlama data, restaking, which was pioneered by industry titans like EigenLayer, has expanded into a $50.5 billion sector.
Proponents of restaking contend that the approach enhances the security of smaller blockchain applications that might not otherwise be able to obtain the funding and community support required to enable proof-of-stake security mechanisms.
By adding stETH (Lido), sfrxETH (FRAX), mETH (Mantle), or OETH (Origin Protocol) to YieldNest’s restaking pool, users can obtain ynLSDe. The underlying yield-generating restaked token is represented by ynLSDe, a tradable and liquid “receipt” token. The team said in a statement that the resulting restaking rewards are returned to ynLSDe holders.
Next, YieldNest compiles the possible yield from restaking sites, such as YieldNest Seeds, EigenLayer Points, and other actively verified services (which is the term used to refer to the dapps that are protected by restaking protocols). Several carefully crafted baskets of various yield-bearing techniques, catered to varying risk appetites, are available on the platform.
The native restaking token, ynETH, was previously made available by YieldNest. It allows users to access a trading strategy overseen by the YieldNest risk management team.
Among its backers are Proof Capital, Backed VC, Faculty Capital, and others. The platform is based on EigenLayer. Angel investors in the company include Sam Kazemian, the inventor of FRAX, Loi Luu, and Michael Egerov, the founder of Curve.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
