Liquid Staking Tokens

Liquid staking protocols can be integrated with Ionic to bring a borrowing-lending use case for the DeFi users and existing protocol communities across supported chains.

Whitelisted users that hold liquid staked tokens can collateralize them into Ionic pools and borrow against them. Therefore, there trusted users can unlock different strategies such as hedging, looping, long, short, and more.

• Collateralize LP tokens - Users can provide LSTs liquidity on AMMs and deposit the received LP tokens into the Ionic pool. This enables users to continue to earn farming rewards on their liquid staked tokens while using the LP as collateral to borrow against.

• Leverage LST to borrow more of a network token - Any user who holds LST can come and borrow more network tokens and use it for different use cases.

• Earn additional rewards - When users deposit their LST-Network Token LP assets in the pool, Ionic automatically redeposits them into the respective yield optimiser vault for autocompounding rewards. Therefore, users can benefit from both the APY by providing liquidity as well as rewards from the yield optimiser protocol, all while collateralizing their position in Ionic.