Thread by @CryptoBlooom

LSDs 🤯

🧪 Want to know more about the most relevant narrative right now?

🧵 About Liquid Staking Derivatives👇

+ Hidden GEM Reveal under $1 mill market cap! 💥 👀

In this thread, you'll learn the following:

✦ 1. Overview of LSDs
✦ 2. Key Players
✦ 3. Hidden Gem 👀
✦ 4. Risks

✦ 1. Overview of LSDs

Liquid Staking Derivatives are the 2nd largest category of DeFi protocols by TVL.

Before the liquid staking era, staking crypto assets was one of the primary methods of generating income for investors.

-- Even currently, it's still lucrative.

Staking shares protocol fees with people who secure the network through; staking the base token.

-- But it also has perceived drawbacks.

With Liquid Staking, investors receive liquid staking derivatives in exchange for staking their assets, representing their claim on the given stake pool.

For instance, when you deposit ETH on Lido, you'll receive stETH, a representation.

Cut short:

Liquidity Staking allows stakers to get yields on their staked assets and also have the leverage of using the representative asset elsewhere.

-- Simultaneously, you can easily stake assets without becoming a validator.

As the world of LSD - Liquid Staking Derivatives evolves, a new opportunity arises which YOU can take advantage of.

I scouted several new LSD projects out there and found one absolute hidden Gem.

🧪 Research hub @Blooomlabs helped me to find it.

What is @Blooomlabs?

A DeFi research gateway & platform full of Web3 tools, tips & tricks, resources, links strategies, whale wallet tracking, smart money tracking and much more.

Do check it out!

✦ 2. Key Players

Some Key players in the LSD place are:

@LidoFinance

@stakewise_io

@pStakeFinance

Now let's get straight to it 👇

✦ 3. Hidden Gem reveal

- @FinanceLiquid

✦ Token: $LIQD
✦ Marketcap: Under $1 million
✦ TVL: $3,426,408.63
✦ Price as of writing: $1120
✦ Supply: 795 LIQD tokens

Site: liquidfinance.io/#/

Dashboard overview:

What's the deal with @FinanceLiquid?

Except for the fact that they have 3X TVL as market cap. 🔥

They are doing (claiming to do) some insane things as an LSD project.

Liquid Finance is a DeFi project that aims to provide liquidity to the DeFi space through a fractional-reserve model of #FraxFinance.

-- A two-token system of $lqETH and $LIQD enables the project to stabilize the price of lqETH, which can be expanded and contracted.

This happens as minting and redeeming are a part of the Liquid Arbitrage Mechanism (LAM).

The LAM maintains the price stability of lqETH and generates revenue through two types of arbitrage trades.

- LIQD is the protocol token and earns a share of the revenue when staked.

The protocol will collect LPs for lqETH paired with $ETH, $BTC, and $DAI during the Growth Phase to capture MEV from pricing inefficiencies in the wider market and sustain the protocol's revenue indefinitely.

🚀 LIQD can go up in value by earning a share of the protocol's revenue when staked in the staking contract.

- Additionally, as the protocol matures and trading volume on the lqETH-ETH pair spikes, the protocol collects fees for the pairs during the Growth Phase.

Also, it will enable the protocol to capture MEV from pricing inefficiencies with flash loans.

The flash loan functionality of the contracts will be private and only accessible to the protocol.

$LIQD can increase demand grow for due to its utility and revenue benefits.

✦ 4. Risks
⚠️ DRAWBACKS:

The team is complete ANON: Nothing to find about them.

Supply is capped to INFINITY...
- Will they mint rug the community like @Arbiswap?

They claim it is needed as a part of the system's structure.

Docs claim tech is battle-tested in simulations - yet @stablekwon had these same claims about $Luna, which collapsed to 0.

These facts make me worried, but

-- Despite these facts, the project is very interesting, and it has a huge opportunity to grow if the team is serious.

On the positive side it has allegedly been audited by @peckshield.

+ Supply distribution looks nice! (Not many holders!) @bubblemaps

🧪 Summary of $LIQD - Why is Liquid unique?

- Liquid Finance uses a two-token system to solve liquidity provisioning issues and generate revenue for the protocol.

- Incorporates the fractional-reserve model of @fraxfinance.

- Uses the LAM to capture MEV opportunities

- Liquid Finance can generate revenue by using the collateral reserve to perform flash loans, capturing a broader range of MEV opportunities.

- They can enable their flash loan service to the public for a fee as another source of revenue.

Thats it!

Don't miss another Gem. Follow @CryptoBlooom and subscribe to @Blooomlabs for exclusive research, insight, and Gem Reveals.

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