LSD Ecosystem Pattern and Trend Analysis

The LSD sector has formed a preliminary pattern. From a hierarchical perspective, DVT service providers such as SSV Network and Obol Labs can be regarded as Layer 0. LST issuers like Lido, Ankr, and Coinbase belong to Layer 1, primarily adopting a commission model, with user earnings coming from ETH's POS income. Layer 2 includes products such as fixed income, stablecoins, and yield aggregation based on LST design. Layer 3 consists of more complex products built on Layer 2.

Overall:

• The technical barrier of Layer 0 is the highest, but attention should be paid to the actual utility of the tokens.
• The L1 layer has seen the emergence of leaders, making it difficult for new entrants to shake the existing landscape.
• The moat of the L2 layer is not deep, testing the team's strength.
• The L3 layer has great development potential, but is limited by the development level of L2 products.

In terms of data, the ETH staking rate has steadily increased, surpassing 16% in June. It is expected that the staking rate will stabilize around 25% in the future, due to reasons including:

1. ETH has a high degree of decentralization.
2. ETH has a wide range of applications.
3. The flourishing L2 ecosystem has decentralized the staking demand.
4. Compliance issues restrict institutions from large-scale staking

The decentralized staking platform accounts for less than 40%, CEX accounts for about 20%, and the rest is made up of node staking and individual staking. The top 3 decentralized platforms dominate, but diversification is an inevitable trend.

In terms of yield, the nesting doll strategy can increase to over 10%. Projects with strong sustainability often have low yields, mainly relying on token incentives. High-quality projects should have real returns, application scenarios, and good token economics.

The development prospects of LSD on L2 are broad, with the most projects deployed on Arbitrum. L2 has low transaction costs and fast speeds, which is expected to attract more users.

In terms of user classification, different users have different focus points. L1 mainly consists of large holders, while L2 involves various types of investors. Future new projects need to strike a balance in terms of security, yield, and decentralization.

Overall, the LSD ecosystem summer is promising, but it is difficult to replicate the glory of DeFi summer. The real explosion may have to wait until the bull market arrives. Project parties need to focus on technological innovation and team building, while investors should build strategies based on their own risk preferences.