On-chain Derivative Protocol

The function of the on-chain derivative protocol is to allow users to engage in various derivative trading activities using LSD,to realize risk management, hedging, and usage in other DeFi protocols. The advantages of the on-chain derivative protocol are as follows: Increase in earnings: The on-chain derivative protocol enables users to enhance yield with different strategies while enjoying staking rewards. Enhance liquidity: Users can convert staked assets into liquid tokens through the on-chain derivative protocol, unlocking the liquidity of their staked assets. This allows users to trade or use LSD at any time, without the need to wait for the staking period to end or queue for redemption. Risk diversification: The on-chain derivative protocol enables users to diversify the risks associated with staked assets, such as security concerns on staking platforms, volatility of staking rewards, and fluctuations in asset prices. Users can reduce risk by purchasing different LSD tokens or combining them into an index token.

Innovative value: The on-chain derivative protocol adds more innovation and value to the DeFi ecosystem. For instance, it facilitates the issuance of stablecoins using LSD, creation of new yield strategies, and development of new trading products. Additionally, it contributes to the security and decentralization of PoS networks by encouraging more users to participate in staking.