DeFi
Decentralized Finance Protocol YieldNest Launches ynLSDe Liquid Staking Derivative
Thursday. August 22 at 2:30 AM
1 min. readYieldNest, a DeFi protocol, is introducing a new liquid staking derivative called ynLSDe to capture restaking yield from EigenLayer. This token will enable Ether holders staked with Lido, FRAX, Origin Protocol, or Mantle to earn additional yield through restaking. Restaking involves using already staked Ether to secure other protocols simultaneously, enhancing rewards. EigenLayer, a restaking protocol on Ethereum, has locked around $12 billion in TVL since 2023. Liquid restaking protocols like Ether.fi and Puffer Finance hold an additional $11 billion in TVL. ynLSDe is obtained by depositing stETH, sfrxETH, mETH, or OETH into YieldNest's restaking pool. It acts as a tradable token representing the underlying yield-generating restaked token. While providing liquidity, LSDs also come with amplified risks. YieldNest aggregates various yield sources for users, including EigenLayer Points, YieldNest Seeds, AVS yields, and Airdrops.