Inventory of 9 Decentralized Stablecoin Protocols Using LST as Collateral

Author: mysexylife.eth, encrypted KOL

Compiled by: Felix, PANews

After the collapse of UST, many traders lost trust in decentralized stability. Therefore, it will switch from one centralized stablecoin to another according to the current situation.

With all the upcoming stablecoin protocols using LST (Liquid Collateral Token) as collateral, greed could be triggered. Most of these agreements are currently far from UST. Many of them are even modified forks of Liquity. The current CDP (Collateralized Debt Position) market is getting bigger and harder to monitor, and there are replicas. This article is an inventory of crypto KOL mysexylife.eth's current stablecoin protocols that use LST as collateral.

Raft

Built on Ethereum.

• Collateral: wstETH, rETH
• Stablecoin: R, market cap $31 million

Raft is a decentralized lending protocol that allows users to lend stablecoin R with LST (currently supports stETH) as collateral. Raft's product is characterized by instant swap and one-step leverage function, which can increase leverage up to 11 times at one time.

Related reading: Inventory of LSDFi classification and 8 early projects worthy of attention

Ethos Reserve

Built on Optimism.

• Collateral: ETH, wBTC, OP
• Stablecoin: ERN, market cap $3.4M

Ethos Reserve will allow anyone to take out an interest-free loan in the form of ERN while using their collateral to generate yield. There is currently no LST, but it will be launched with v2.

Shade Protocol

Built on Secret.

• Collateral: stATOM, stOSMO, stkd-SCRT
• Stablecoin: SILK, market cap $2.8 million

Shade Protocol is a connection privacy preserving DeFi application built on Secret Network. The privacy-protecting stablecoin SILK uses the algorithmic stablecoin model pioneered by Terra/Luna, which is linked to gold, Bitcoin, and the US dollar.

Vesta

Built on Arbitrum

• Collateral: ETH, wstETH, GMX, ARB, GLP, DPX, gOHM
• Stablecoin: VST, market cap $7.3 million

Users can deposit assets as collateral to mint VST stablecoins based on their Collateralization Ratio (CR). Assets deposited in Vesta will go to the active pool. In the author's opinion, Vesta is still the best CDP protocol for Arbitrum.

Related reading: 3 minutes to understand the stable currency issuance agreement Vesta: Will it become the next potential Alpha of Arbitrum?

Prisma Finance

Built on the Curve ecology

• Collateral: wstETH, cbETH, rETH, sfrxETH and WBETH
• Stablecoin: acUSD

The core demand Prisma Finance solves is the improvement of capital efficiency. Users can mint stable coins through CDP to achieve leverage while retaining the price fluctuation and yield exposure of LST.

Related reading: A Quick Look at 6 Early LSDFi Potential Projects

TapiocaDAO

Tapioca is a full-chain money market built on LayerZero. Users can mint USD, a full-chain stablecoin: usd0. Variable borrowing fees are employed to encourage arbitrageurs to maintain the peg.

Related reading: Understanding Tapioca Dao in 10 minutes: a full-chain currency market based on LayerZero

Sable Finance

Sable Finance is a decentralized lending protocol. Users can use BNB as collateral to borrow stablecoin USDS with zero interest rate and a minimum mortgage ratio of 110%. Loans are secured by a stability pool consisting of USDS and guarantors ensuring maximum protection. Compared to Liquity's original model, users get an additional source of revenue.

Lucid Finance

Lucid Finance is a platform that provides a lending protocol for LST-LPT, and its stablecoin dUSD is over-collateralized. The project will first launch on the Ethereum network, and in a few weeks will be live on the Polygon, Arbitrum and Optimism networks. Collateral includes LST and blue-chip LP tokens.

Seneca

Seneca is a full-chain independent lending marketplace focused on collateral. The platform allows users to borrow senUSD against whitelisted yielding collateral, offering institutional-grade lending and leverage to maximize capital efficiency. Seneca's loan marketplace operates using independent debt pools. The Seneca protocol will be launched on Arbitrum.

Related reading: Inventory of current early LSDFi potential projects