Multiple Roles of WGRT in Waykichain’s LSDFi Ecosystem

WaykiChain WICC
2 min readOct 15, 2023

In the realm of decentralized finance (DeFi), each emerging concept or product has the potential to redefine the industry landscape. LSDFi (Liquid Staking Derivatives) is one such example. Designed to address liquidity issues in staked assets, LSDFi injects new vitality and diversity into traditional staking models.

As this mechanism gains increasing recognition within the industry, Waykichain has also undertaken extensive research on how to integrate this advanced DeFi mechanism into its financial ecosystem. This goes beyond technical implementation and is closely related to the multifaceted application of Waykichain’s governance token, WGRT.

As a governance token within the Waykichain ecosystem, WGRT holders can participate in platform governance, including adjustments to smart contract parameters, voting on new features, and setting up reward mechanisms. Following the introduction of the LSDFi mechanism in WICC, WGRT holders have the authority to make decisions on several key aspects related to LSDFi, such as setting the ratio for generating and staking W-LSD, as well as the distribution ratio of reward pools.

Given that the generation of W-LSD derivatives under the LSDFi mechanism also requires a robust liquidity pool for support, WGRT can not only serve as an additional collateral asset to fortify the liquidity pool but can also be used as an incentive for participants. A dedicated WGRT reward pool could be established to offer extra rewards to active W-LSD holders and liquidity providers.

Importantly, the value of WGRT as a governance token is intricately linked to the overall health of the platform. The enhanced liquidity of WICC through the LSDFi mechanism will indirectly boost the value and market participation of WGRT. WGRT holders may thus be more inclined to hold and participate in the long term, further strengthening the entire Waykichain ecosystem.

Even more crucial is contract security and fund safety in DeFi projects. Through governance, WGRT holders can vote to decide how to better optimize risk management via LSDFi, including contract audits, insurance funds, etc. WGRT empowers the community with greater autonomy, enabling timely adjustments to the LSDFi mechanism, allowing the ecosystem to adapt better to constantly changing market needs and conditions.

By integrating the LSDFi mechanism, Waykichain not only broadens the diversity of its financial ecosystem but also grants WGRT holders increased participation and decision-making power. This is a step toward a more efficient, transparent, and secure decentralized financial platform, reflecting Waykichain’s new understanding and grasp of future DeFi development trends.

In this ever-changing DeFi world, continuous innovation and adaptation are key to success. Therefore, we will keep an eye on community feedback to constantly refine and optimize our products and governance structure. We firmly believe that only through extensive community participation and high governance autonomy can the full potential of blockchain technology be unleashed, paving the way for a fairer, more efficient, and sustainable financial future.