LDX Announces Major Restaking Partnership with Ethena: US$150 Billion Market Shift Looming
Staff Writer • 2024-07-09
Leading real yield DeFi protocol, Lyra Derivatives Network (LDX) (US$57M TVL), is thrilled to announce a groundbreaking partnership with the fastest-growing DeFi protocol, Ethena (US$3.6B TVL). In an unprecedented move within the decentralized finance (DeFi) space, LDX and Ethena are collaborating to integrate advanced options trading into Ethena's basis trade strategies. This integration enables Ethena users to restake their $sUSDe in LDX’s $sUSDe-Bull Vault, potentially increasing their yield by up to 2.5 times the standard Ethena yield. Notably, this enhancement comes without exposing users' capital to downside risks, leveraging LDX’s expertise in options to provide upside exposure to ETH alongside weekly yield and point incentives. Nick Forster, founder of LDX, highlighted the market demand driving this innovation: "As the market trends sideways and the search for real yield intensifies, we've adapted by launching a product that meets these needs. There's significant hype around points and yield, and our product ensures that users can gain real yield on top and maintain long exposure to the market. This creates a sticky user base and offers substantial upside potential." LDX’s continuous innovation in the DeFi sector was underscored last month when it launched a product to tokenize derivatives yield on EigenLayer in collaboration with EtherFi, Swell Network, and Kelp DAO. This initiative has propelled LDX to a total value locked (TVL) of US$57 million. Data from Defilama, analyzed by LDX, shows that Ethena’s TVL has more than doubled in the past three months, demonstrating robust growth and user adoption. A New Era for DeFi: Combining Stability and Growth Ethena users now have the unique opportunity to combine stable coin yield with long market exposure without risking their principal. This innovative approach exemplifies the potential of cross-protocol integrations within DeFi. Guy Young, founder of Ethena, expressed his enthusiasm for the partnership: "Building new structured products upon yield-bearing collateral is one of the key unlocks we are most excited about at Ethena to drive real-yields in the next phase of maturation in DeFi. Cross-protocol integrations like this highlight the powerful impact of composability within DeFi." Anticipating a US$150 Billion Market Shift Nick Forster emphasized the broader implications of this partnership: "This partnership with LDX and Ethena marks a pivotal moment in the DeFi ecosystem. As products like Ethena, which pass on yield to users, continue to evolve, we anticipate a US$150 billion shift in market structure over the next two years, effectively challenging traditional stable stores of value like Tether and USDC. This trend adds sustainability to the points ecosystem and ultimately creates a robust, real yield stable asset environment." About LDX Lyra Derivatives Network (LDX) is the first infrastructure for real yield on top of restaking, trading, and farming, boasting a total value locked (TVL) of US$57 million. About Ethena Ethena, with a TVL of US$3.6 billion, is a synthetic dollar protocol built on Ethereum, providing a crypto-native solution for money that is not reliant on traditional banking system infrastructure. It also offers a globally accessible dollar-denominated instrument known as the "Internet Bond."
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