YieldNest Launches ynLSDe Token to Enhance Liquid Staking Derivatives

YieldNest, an asset management layer for restaking, has launched the ynLSDe token, a new Liquid Staking Derivative (LSD). This token allows holders of Ether staked with platforms such as Lido, FRAX, Origin Protocol, or Mantle to earn additional yield from Actively Validated Services (AVS) through restaking while retaining liquidity.

The introduction of ynLSDe is significant because it enables users to restake their already-staked ETH assets from other platforms, thus offering additional rewards without sacrificing liquidity. Users can obtain ynLSDe by depositing stETH (Lido), sfrxETH (FRAX), mETH (Mantle), or OETH (Origin Protocol) into YieldNest's restaking pool. In return, ynLSDe acts as a tradable and liquid token representing the underlying yield-generating restaked assets.

YieldNest aggregates potential yield sources, including EigenLayer Points, YieldNest Seeds, AVS yields, and AVS Airdrops, on top of the yield from staked ETH. This approach promises a yield slightly higher than the native staking yield of ETH put into EigenLayer itself. Additionally, ynETH can function as collateral for the basket itself or serve as collateral for isolated AVS categories.

The trend of restaking is on the rise, driven by the growing demand for efficient capital utilization in decentralized finance (DeFi). According to DeFiLLama, Total Value Locked in liquid restaking has more than doubled over the past 12 months, growing from $19.4 billion to $50.5 billion. The market capitalization of Liquid Staking Tokens (LST) accepted by YieldNest exceeds $25 billion, showcasing the existing demand for Liquid Staking Derivatives.

YieldNest's ynLSDe stands out with several unique features. Unlike other protocols that use a single restaking token for native and liquid restaking products, YieldNest introduced ynETH for native restaking and ynLSDe specifically for liquid restaking, providing greater transparency for users. Additionally, ynLSDe maximizes staked ETH assets by functioning within YieldNest Curated AVS Baskets and can serve as collateral for isolated AVS categories. It also offers higher yield outcomes through dynamic allocation, optimizing the allocation of staked assets across various strategies for enhanced returns. Security is a top priority, with the token's code designed to minimize complexity and potential vulnerabilities.

YieldNest's approach offers ETH holders a streamlined solution to restake their assets into EigenLayer, earning rewards while maintaining liquidity. The protocol's risk-adjusted strategies cater to different user preferences, from diversified baskets to isolated asset solutions. This allows users to choose the most suitable strategy based on their risk tolerance and investment goals, ensuring higher profits while mitigating risks.

According to Amadeo Brands, YieldNest's CEO & Co-Founder, the launch of ynLSDe aims to drive the market for derivative financial products in DeFi, broadening their audience, and fostering the development of a decentralized financial system. By offering a new product for liquid staked derivatives, YieldNest seeks to boost profits while maintaining a low-risk profile for users seeking liquidity and increased yield for their tokens.