Under the wave of ETH2.0, the Liquid Staking Derivatives (LSD) sector is meeting the demand of small and medium-sized investors to participate in ETH2.0 Staking. Emerging LSD service providers such as Lido, Rocket Pool, and SSV are representing this market. Lido and Rocket Pool, as asset management providers, accept user fund staking and provide liquidity staking tokens such as rETH and stETH (CEX is also one of them), which are operated by operators like SSV.
Currently, Lido is the leading application in this sector, with a market share of about 74% of the entire LSD market and controlling nearly 18% of the DeFi market (TVL). However, the large market share of Lido and stETH, which are deeply involved in the DeFi market, means that any problems that arise could be fatal to the development of the DeFi market and the Ethereum ecosystem. At the beginning of this year, Lido had nearly 116,000 depositors and controlled 30% of the total ETH tokens, but only 54 node operators. This means that 30% of the PoS validators are controlled by 54 entities, increasing the risk of centralization. As Lido’s market share further increases, it may monopolize most of the profits generated by the ETH network.
In contrast, ProTradex is more decentralized. ProTradex includes a yield optimization aggregation protocol, built on existing applications and focusing on on-chain derivative protocols to provide liquidity. It uses delta-neutral or pseudo delta-neutral strategies to aggregate the returns of index pools or LPs into a single asset, thereby eliminating their impermanent losses or exposure to unwanted assets.
ProTradex will help small and medium-sized investors by providing liquidity and generating significant returns through its AI-driven arbitrage strategy, which will allocate profits to users via smart contracts. ProTradex is more decentralized than other liquid staking derivatives (LSD) providers, and its revenue streams are diverse.
ProTradex’s revenue streams include:
- Trader losses
As a liquidity provider for derivatives protocols, ProTradex profits from the losses of traders in the protocol’s game theory.
- Liquidity revenue
ProTradex earns substantial revenue in the liquidity market through its more advantageous derivatives liquidity protocol.
- Fees
ProTradex will charge a small fee to users, which will be a portion of the platform’s revenue.
- Single-token swap revenue
ProTradex generates revenue from some DeFi single-token staking pools.
ProTradex’s protocol will automatically distribute profits to users through a revenue aggregation and allocation smart contract, with users able to choose between a 7-day settlement and compound interest. As traditional LSD protocols’ downsides become more apparent, ProTradex’s advantages have the potential to be further amplified, making it the next-generation killer in the LSD ecosystem.
ProTradex official channels:
Telegram Announcement: https://t.me/ProTradexAnnouncements
Telegram Chat: https://t.me/ProTradexCommunity
Discord: https://discord.gg/protradex
Medium: https://medium.com/@ProTradex
Docs: https://protradex.gitbook.io/protradex-docs/
Website: https://www.protradex.finance/#/about
Twitter: https://twitter.com/Pro_Tradex