Liquid Staking Protocol

Liquid Staking Protocol: Unlocking Real-World Asset Liquidity

The Liquid Staking Protocol provides a foundation for integrating real-world assets into DeFi. It enables users to mint yield-bearing stable assets such as cEUR, cJPY, and cXAU, combining stable valuations with consistent yield generation. By leveraging advanced mechanisms like on-chain FX hedging and partnerships with liquidity providers, the protocol addresses inefficiencies in traditional finance and offers a scalable solution for global users.

Key Mechanisms

  1. Direct Deposits and Asset Conversion Users can deposit sUSDe or USDe to mint stable assets that track foreign currencies or commodities. The protocol eliminates the need for foreign bank accounts by offering a seamless swap function, allowing users to convert any supported asset into sUSDe before minting stable assets. This streamlines access for users, reducing complexity and cost.

  2. FX Hedging and Valuation Stability The protocol uses a hybrid FX strategy to maintain price stability. Partnerships with infrastructure providers like Shift Markets enable precise hedging through derivative instruments, ensuring stable valuations even in volatile markets. Oracles such as the Pyth Network supply real-time price data to support accurate adjustments, while periodic rebalancing ensures stable asset performance in line with global market conditions.

  3. Yield Generation Aligned with Economic Conditions Stable assets like cEUR reflect differences in interest rates between USD and other currencies, offering localized yields. For example, if EUR interest rates exceed USD rates, cEUR holders benefit from higher net yields. This approach aligns yield generation with real-world economic conditions, providing a robust alternative to USD-centric systems.

  4. Transparency and Trust Transparency is a core feature of the protocol. Treasury details and collateral positions are verified and published using cryptographic attestations. Users can access signed data snapshots to confirm full collateralization and proper hedging, building trust through consistent and verifiable reporting.

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