– The LSDFi sector’s total value locked has grown by 5,870% since January as ETH holders opt to stake rather than liquidate.
– LSD protocols accounted for 43.7% of the total 26.4 million ETH staked by August 2023, with Lido being the largest player in the market.
– ETH holders prefer to re-stake for better yield opportunities rather than liquidate their assets after withdrawing.
– The LSDFi sector has seen significant growth, with the total value locked across the top 10 protocols (excluding Lido) surging to over $900 million this year.
– TVL in LSDFi protocols has grown by 5,870% since January 2023, while the total decentralized finance TVL has contracted by around 8%.
– The average yield for LSD protocols since January 2022 has been 4.4%, but it is expected to decline as more ETH is staked.
– Diva, an LSDFi platform, has gained attention for its “vampire attack” on Lido, attracting users and liquidity with higher incentives.
– Diva’s TVL has surged 650% since the beginning of October, reaching 15,386 stETH valued at around $24 million.
– This growth in the LSDFi sector highlights the increasing popularity of staking and the desire for better yield opportunities among ETH holders.