Liquid Staking Problems
Liquid Staking is one of the largest niches in #DeFi at the moment. This breakthrough development brings many new opportunities and unexpected benefits to participants as well as PoS blockchains.

Flywheel

The flywheel of LSD is quite simple. The popularity of PoS blockchains and high user demand generate great interest in LSD platforms. LSDs have helped solve various issues for stakeholders, leading to their increasing development.
Although LSDs bring significant value to the market, there are still a couple of century-old issues that LSD projects must consider before developing or launching: liquidity and adoption within DeFi platforms. If an LSD project fails to address either of these factors, it could lead to their failure.

Imagine a bank printing money when people deposit funds, but if that money is not accepted by stores, it holds no value outside the bank.

Next, if the value of the currency you deposited suddenly drops, leading to a massive sell-off by other holders, the value of your derivative assets will plummet compared to their original value. These are the risks you face when staking in LSD projects.

Currently, there are projects developed to address these century-old issues. For instance, Sanctum will solve the liquidity problem for new projects. They just need to build and attract users; liquidity will be ensured by Sanctum.

In terms of adoption and optimization within DeFi projects, iLoop will solve this with an LTV ratio of up to 93%, higher than any other platform. Liquidation is also a critical issue, but on iLoop, SOL-backed LSTs will reduce sudden liquidations if the collateral is short-sold in the market.
The century-old issues of LSD projects on Solana have now been resolved. You just need to build your product and attract users, we will take care of the rest

#iLoop
#DeFi