Enhancing LST Flexibility for DeFi Compatibility

Challenge

Reward-Based LSTs in Babylon which gets different tokens as yield from various POS network over time, face compatibility issues in DeFi environments. Many DeFi protocols require more trackable fiat systems for accurate lending, borrowing, and liquidity calculations. Additionally, Bitcoin’s limited scripting capabilities limiting the flexibility of LSTs.

Nativerse Solution

To overcome these challenges, Nativerse’s LST Optimizer Tool transforms reward-based LSTs (e.g., satBTC) into yield-bearing LSTs (e.g., wsatBTC). Instead of getting different tokens as a yield, Nativerse's yield-bearing LSTs swapping those tokens with BTC and adding all those yields back to the pool thus aligning better with DeFi requirements for facilitating the fiat tracking and predictable token behaviors. This transformation not only enhances seamless integration with DeFi but also allows BTC stakers to earn yields in BTC and automatically compound the value of their staked assets over time. By Nativerse enables trustless BTC staking that meets the demands of modern DeFi use cases while maintaining the integrity and user experience of the BTC stakers.