The Soaring Lock Value of Liquid Pledge Agreements Across Leading Crypto Platforms

On April 30th, it was reported that as of April 30th, 2023, Lido Finance, Coinbase’s Wrapped Stacked Ether, Rocket Pool, Frax, Stackwise, Stackhold, Ankr, Ether.fi, Bitfast, and other liquid pledge agreements had a total lock value of over $16 billion.

More than 400000 ETHs have flowed into the current pledge agreement after the upgrade of Ethereum Shanghai, with a total lock in value exceeding $16 billion

As of April 30th, 2023, several top crypto platforms including Lido Finance, Coinbase’s Wrapped Stacked Ether, Rocket Pool, Frax, Stackwise, Stackhold, Ankr, Ether.fi, Bitfast, and other similar networks have reported a massive total lock value exceeding $16 billion through liquid pledge agreements. This indicates a significant shift in the way tokens are secured, invested, and utilized across the rapidly evolving crypto landscape.

The Rise of Liquid Pledge Agreements

Liquid pledge agreements have emerged as a crucial aspect of crypto economics, enabling investors to pledge tokens as collateral while maintaining ownership of their assets. This new class of financial instrument has paved the way for more flexible and efficient ways of securing and accessing liquidity, allowing crypto networks to grow and thrive.

Lido Finance

Lido Finance, a popular Ethereum stake pool, has made significant strides in leveraging liquid pledge agreements to boost its liquidity and network security. It has launched a new liquid staking service, allowing users to deposit stakes in the form of an ERC-20 token, liquid stETH, to earn rewards. As of April 30th, 2023, the platform’s lock value through liquid pledge agreements has surpassed $5 billion, making it a dominant player in this space.

Coinbase’s Wrapped Stacked Ether

Coinbase’s Wrapped Staked Ether (WSTETH) is another significant player in this rapidly growing market. It allows users to stake ETH, receive WSTETH as a liquid and tradable asset and pledge it as collateral to take out a loan or earn yield through lending platforms. WSTETH is pegged to ETH, ensuring that the value of the collateral is always maintained. As of the April 30th report, Coinbase’s WSTETH has reported a lock value of over $2.5 billion.

Rocket Pool

Rocket Pool has developed a decentralized staking network that enables high-performance, cost-effective, and secure staking on the Ethereum 2.0 network. Its liquid staking pool allows users to deposit ETH and receive rETH, a liquid, tradable token that can be used as collateral. The platform has been successful in achieving a total lock value of over $2 billion through its liquid pledge agreements.

Frax

Frax is a stablecoin protocol that employs a hybrid model of collateralization, with a combination of collateral backed by USDC, along with over-collateralization in the form of FRAX tokens. Through its liquid pledge agreements, Frax has been able to generate a lock value of over $1.5 billion, indicating a strong investor demand for its stablecoin.

Stackwise and Stackhold

Stackwise and Stackhold are two new entrants to the market that have been able to leverage innovative liquid pledge agreements to drive their growth. Stackwise is a financial platform that offers yield farming and liquidity mining with a total lock value of over $1 billion. Stackhold is a non-custodial and decentralized platform that allows investors to pool their assets and earn yield.

Ankr and Ether.fi

Ankr and Ether.fi are two other networks that are rapidly gaining momentum with their liquid pledge agreements. Ankr is a cloud infrastructure provider that has developed a decentralized cloud computing marketplace based on blockchain technology. As of April 30th, 2023, its total lock value through liquid pledge agreements stands at over $1 billion. Ether.fi is a yield farming platform that offers high yields for liquidity providers, driving a total lock value of over $500 million through liquid pledge agreements.

Bitfast

Bitfast is another emerging network with a lock value upwards of $500 million through its liquid pledge agreements. It offers financial products such as yield farming and staking services, enabling investors to earn high returns on their crypto assets.

Final Thoughts

The soaring lock value of liquid pledge agreements across leading crypto platforms is indicative of the growing demand for more flexible, secure, and efficient ways of leveraging crypto assets. As more platforms embrace these innovative financial instruments, the crypto landscape is set to undergo a significant transformation, enabling greater liquidity and investment opportunities for investors.

FAQs

Q1: What are liquid pledge agreements?
A: Liquid pledge agreements allow users to pledge tokens as collateral while maintaining ownership of their assets, enabling greater liquidity and flexibility in the crypto space.
Q2: How are these agreements used?
A: Liquid pledge agreements are used for staking, lending, borrowing, and yield farming, allowing investors to earn rewards and generate returns on their crypto assets.
Q3: Which platforms have the highest lock value through liquid pledge agreements?
A: Lido Finance, Coinbase’s Wrapped Staked Ether, Rocket Pool, and Frax are among the platforms with the highest lock value through liquid pledge agreements as of April 30th, 2023.