LST Optimizer
Nativerse’s LST Optimizer Tool allows users to convert their reward-based LSTs into yield-bearing LSTs, a critical transformation for expanding the utility of these tokens within DeFi applications. For instance, with the LST Optimizer, users can convert satBTC (a reward-based LST) into wsatBTC (a yield-bearing LST). This conversion facilitates smoother DeFi integrations and enables seamless swapping within Nativerse’s multi-LST pool.
Understanding Reward-Based and Yield-Bearing LSTs
Reward-Based LSTs
Reward-based LSTs in BTC ecosystem, like satBTC, earn staking yields from various PoS networks in the form of multiple token types. As users hold these tokens, their balance increases over time due to the addition of staking rewards. However, this model introduces significant challenges in DeFi integration:
The fluctuating token quantities and types make it difficult to track fiat values consistently.
Swapping and liquidity calculations become complex, leading to compatibility issues with lending, borrowing, and swapping protocols.
These limitations hinder the usability of reward-based LSTs in DeFi environments that rely on stable, predictable token behavior.
Yield-Bearing LSTs
Yield-bearing LSTs, like wsatBTC, resolve these issues by transforming the reward mechanism from token accumulation to value accrual. Instead of distributing multiple token types as staking rewards, our system aggregate these rewards, swap them into BTC, and reinvest the yields into the LST pool. This mechanism ensures:
Consistent token tracking: Aggregating yields into BTC simplifies fiat valuation and enhances compatibility with DeFi protocols.
Stable token quantities: The total token supply remains stable, while its intrinsic value grows over time.
Predictable behavior for DeFi integration: Our Yield-bearing LSTs are easier to utilize for lending, borrowing, and swapping due to their stability.
This approach not only aligns yield-bearing LSTs with the needs of modern DeFi but also allows BTC stakers to earn yields directly in BTC. By automatically compounding these earnings, it maximizes the value of their staked assets while maintaining compatibility and trustless security across decentralized ecosystems.
Nativerse's innovations bridge the gap between staking and DeFi, empowering BTC holders to unlock the full potential of their assets.
Purpose and Benefits of the LST Optimizer Tool
DeFi Compatibility By converting reward-based LSTs into yield-bearing ones, the LST Optimizer enhances compatibility with various DeFi protocols. Yield-bearing LSTs, such as wsatBTC, maintain a stable quantity, which is ideal for precise transactions and integrations within DeFi.
Multi-LST Pool Swaps The conversion to yield-bearing LSTs also enables users to participate effectively in Nativerse’s multi-LST pool. With yield-bearing tokens, users can swap assets in the pool without issues related to fluctuating quantities, simplifying the process and improving liquidity stability.
Through the LST Optimizer Tool, Nativerse allows users to maximize the potential of their assets across DeFi platforms, combining flexibility, simplicity, and enhanced usability.
Last updated