Waykichain Ecosystem Plans to Introduce LSDFi: A New Frontier for Staking, Lending, and Derivative Trading

WaykiChain WICC
2 min readOct 15, 2023

With the rapid development of decentralized finance (DeFi), a plethora of innovative financial products and mechanisms are emerging. Among them, LSDFi (Liquid Staking Derivatives) — a DeFi product based on Liquid Staking (LSD) — has gained significant industry attention. Waykichain, as a forward-thinking blockchain project, is actively considering the integration of the LSDFi mechanism into its ecosystem.

Within the Waykichain WICC ecosystem, the implementation of the LSDFi mechanism will involve multiple facets.

Firstly, a dedicated smart contract will be deployed to handle the staking of WICC and the creation of its derivative (tentatively named W-LSD). Users can stake WICC through this contract to generate W-LSD.

The generated W-LSD will have multiple utilities. It can circulate within the Waykichain ecosystem and be used on other DeFi platforms.

For instance, W-LSD can act as a liquidity token and be added to liquidity pools on other DeFi platforms like Uniswap and Sushiswap, earning transaction fees for its holders. W-LSD can also participate in other DeFi lending platforms like Compound or Aave, as a collateral or lending asset, thereby earning additional yields. On some advanced DeFi platforms, W-LSD can even be used in more complex financial derivative trades like options and futures.

Additionally, a standalone reward pool will be established to distribute staking rewards to W-LSD holders proportionally.

The introduction of the LSDFi mechanism will have a multi-faceted positive impact on the WICC ecosystem. The W-LSD derivatives will significantly enhance WICC’s asset liquidity. These derivatives can not only circulate within the Waykichain ecosystem but also engage in various financial activities on other DeFi platforms, extending from liquidity provision to collateralized lending, thus further broadening the scope of asset utilization.

Moreover, the LSDFi mechanism is expected to attract more users to participate in the Waykichain ecosystem, enriching its product line. Multiple revenue channels and high liquidity will make WICC increasingly appealing, thereby boosting user growth.

Through these diverse application scenarios, the LSDFi mechanism not only enhances WICC’s asset liquidity but also provides users with diversified revenue streams, significantly boosting the appeal of the WICC ecosystem.

With the introduction of the LSDFi mechanism, we can anticipate a more dynamic and diversified future for the Waykichain WICC ecosystem. Moreover, this innovation opens up more possibilities for collaborations with other DeFi projects. Ultimately, WICC aims to become a pivotal hub connecting various decentralized financial services, leading the blockchain industry towards a more open, efficient, and diverse future.