After months of tireless effort and collaboration with an amazing team, we are excited to announce Avatr, a novel protocol that offers interest-free, real-yield , self-repaying loans for LSD tokens.
Before we dive into Avatr, let’s take a step back and first understand why it’s even needed in the first place and what problem it is solving.
Liquid Staking Tokens
In the majority of Proof of Stake (POS) networks, including Ethereum, staking enables participants to earn rewards by assisting in transaction validation.
However, during the staking period, tokens become non-transferable, non-tradeable, and cannot serve as collateral, rendering them illiquid.
Avatr staking offers a solution to this liquidity constraint. By employing a liquid staking provider, users deposit tokens, which are then staked on their behalf. In return, depositors receive a voucher that can be redeemed for the original staked tokens.
This voucher, representing the staked assets, can be traded or utilized as collateral in various financial applications. Consequently, these vouchers are commonly referred to as liquid staking derivatives or LSD, highlighting their role in addressing the illiquidity issue.
Utilizing LSD Tokens
With LSD tokens in hand, you have the flexibility to trade them in the market. However, selling them would result in the cessation of staking rewards. Suppose you want to invest in a high-potential token while continuing to receive staking rewards?
One option is to secure a loan, but this approach often entails substantial interest charges, which can significantly impact your staking rewards.
What if there’s a more advantageous solution?
Consider offering interest-free loans.
Interesting, right?
But can we enhance it further?
Imagine self-repaying, interest-free loans.
Intriguing, indeed.
And what about elevating it even more?
Envision self-repaying, interest-free loans without liquidation risk.
An unparalleled combination!
Avatr is a revolutionary brand on deploying innovative DeFi products on Ethereum. The Avatr LSD Protocol will enable interest-free, self-repaying loans with no liquidation risk, using #LSD tokens #stETH #rETH #frxETH as collateral and supporting future expansion to other yield-generating assets.
Website: www.avatrlsd.com
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