Since the DeFi Summer, on-chain activities and applications have gradually shifted the cryptocurrency industry's narrative, altering the investment methods and habits of cryptocurrency investors. Initially, most investors aimed to earn yields through liquidity mining on AMM DEX platforms. However, they often found themselves navigating multiple LP pools, seeking better yield efficiency while trying to hedge against potential impermanent losses. The introduction of yield farming products like YFI, YFII, and Golff marked the dawn of an era characterized by automated, risk-free yield in on-chain investments.
In the early stages, the bullish market delivered substantial returns for most yield farming products. For instance, in September 2020, the yETH vault in YFI's ecosystem boasted an annualized yield of approximately 33.49%, serving as a general benchmark for returns in that sector. The only drawback during that period was the considerable loss incurred due to high gas fees on the Ethereum network, rendering it unsuitable for small investors as the returns often failed to cover the associated costs.
In practice, yield farming products operate by automatically generating earnings through established strategic programs that identify optimal yield opportunities in the market. These programs switch between various earning methods, such as LP pools and staking pools. However, yield farming products rely on these strategic programs, which require continuous adjustments to respond to shifts in market yields. This "automated" earning method, while dependent on manual adjustments, lacks a certain level of flexibility. In the current bear market, achieving substantial returns with these yield farming products can be challenging.
During bear markets, the availability of stable and consistent returns becomes increasingly rare, and many investors are cautious about expecting significant high returns given the current market conditions. 0xLSD is revolutionizing this sector by incorporating innovative technologies like AI, elevating automated yield generation to new heights and transforming it into risk-free yields. In the midst of an ongoing bear market, 0xLSD emerges as a beacon of hope for investors, offering a fresh perspective on investment opportunities.
The risk-free yield narrative of 0xLSD.
0xLSD has developed a liquidity yield aggregation protocol powered by AI technology, forming a comprehensive liquidity yield ecosystem around it. The 0xLSD ecosystem serves as a bridge between investors and on-chain applications in need of liquidity, offering users risk-free yield returns while channeling liquidity to these applications, creating a mutually beneficial arrangement.
From the user's perspective, 0xLSD caters to the stable and secure yield requirements of investors. Unlike traditional yield farming products, 0xLSD's liquidity yield aggregation protocol autonomously engages in yield-generating activities across various DeFi protocols using advanced strategies. What sets it apart is the integration of AI data analysis and intelligent algorithms, enabling the system to automatically detect changes in on-chain data and adapt strategies accordingly. This innovative approach to automated yield generation offers higher efficiency and the ability to identify and proactively address potential risks, allowing for timely adjustments.
Furthermore, 0xLSD's yield generation extends beyond DeFi DEX (AMM LP, Staking, etc.), as it can autonomously predict and generate trading income from various on-chain derivative protocols. This unique capability distinguishes 0xLSD from most automated yield products, elevating its overall yield potential.
Cryptocurrency investment is emerging as a prominent trend, with the Total Value Locked (TVL) in the DeFi sector currently reaching approximately $39.554 billion. However, the broader market has entered a downturn, dampening investors' appetite for investment. Consequently, billions of dollars in cryptocurrency assets find themselves locked in various DeFi protocols, suffering from a lack of liquidity.
0xLSD is at the forefront of transforming the investment landscape by introducing a novel yield system designed to invigorate investor interest and efficiently mobilize these untapped funds. The substantial volume of assets within 0xLSD's automated yield system holds the potential to generate significant returns.
0xLSD is also leading a new narrative of risk-free yield.
A New Liquidity Hub: The Essential Infrastructure for the Web3 World
Liquidity depletion is a common challenge in the crypto market during bearish periods. Since the last bull market, over 70% of DeFi projects have faced extinction due to liquidity shortages. Whether it's liquidity mining or Liquidity as a Service (LaaS) projects, they often struggle to provide effective liquidity during bear markets and may inadvertently contribute to a death spiral.
While 0xLSD offers users risk-free returns, it also efficiently deploys aggregated funds for on-chain liquidity and long-term liquidity provision within the DeFi space. This approach drives the sustainable development of the ecosystem. Unlike traditional liquidity mechanisms, 0xLSD consolidates idle on-chain funds into a scalable liquidity hub through long-term risk-free yield returns. Any on-chain protocol can seamlessly integrate with 0xLSD and benefit from a continuous liquidity supply. The solution provided by 0xLSD is inherently more sustainable, revolutionizing the landscape of on-chain liquidity.
Additionally, 0xLSD plays a pivotal role in the long-term growth of the Liquidity Staking Derivatives (LSD) sector.
Following the completion of the ETH2.0 upgrade, the LSD sector has emerged as a significant narrative in the industry. Presently, over 25% of circulating Ethereum is staked, with expectations of continued growth. Within the staked ETH, approximately one-third is allocated to liquidity staking protocols, with a majority, exceeding 86%, directed towards Lido. While centralized exchanges have also introduced liquidity staking tokens (LST) to participate in this field, they have garnered less popularity compared to decentralized protocols, accounting for only half the staked amount in comparison to LSD protocols.
The LSD sector represents a substantial, long-term trend, and 0xLSD is wholeheartedly dedicated to its continued growth. Presently, 0xLSD has amassed a significant Proof of Stake (POS) asset pool. These funds are strategically deployed across various LSD protocols, with the aim of diversifying the dominance currently held by leading protocols like Lido. Simultaneously, 0xLSD ensures the provision of long-term liquidity for assets within the Liquidity Staking Tokens (LST) and LSDFi sectors.
The LSD sector serves as a fundamental infrastructure for upholding the security of proof-of-stake (POS) chains. 0xLSD's active promotion of LSD sector development indirectly enhances the security of POS chains.
As a pioneer in risk-free mining, 0xLSD is spearheading a new era of liquidity. As the potential of cryptocurrency assets continues to unfold, the crypto industry is poised to enter its next phase of evolution.
