Facilitating Liquidity and Stability with the Multi-LST Pool

Challenge

As the number of Liquid Staking Tokens (LSTs) grows, maintaining liquidity and balance between various tokens can become challenging. DeFi users often need an efficient way to swap between multiple LSTs without encountering significant price slippage or liquidity issues. Additionally, new LST projects face hurdles in gaining traction due to limited liquidity in their early stages, which can restrict their usability and growth in the ecosystem.

Nativerse Solution

Nativerse’s Multi-LST Pool addresses these issues by creating a shared multi lst liquidity pool that supports a infinite range of LSTs. This pool not only provides users with a flexible, efficient mechanism to swap between multiple LSTs but also helps bootstrap liquidity for emerging LST projects. By setting up a dynamic input and output fee structure, Nativerse’s Multi-LST Pool encourages a balanced supply of each lst, discouraging excessive accumulation or depletion of specific LSTs. This balance is achieved through Input and Output Fees, which adjust according to the relative supply of each token in the pool, thus promoting fair and stable liquidity.

Benefits

• Improved Liquidity: Users can easily swap between various LSTs with minimal slippage, supporting a liquid trading environment for stakers.

• Support for New LST Projects: The pool lowers the entry barrier for new LST projects, allowing them to generate lsts with a fraction of time ( Launch Tokens Effortlessly ), bootstrap liquidity, and gain visibility within the ecosystem.

• Enhanced Stability: By incentivizing a balanced distribution of tokens through a dynamic fee structure, the Multi-LST Pool maintains liquidity and prevents the dominance of any single token, ensuring a democratize Bitcoin LST environment.