Seamless Protocol is launching the Integrated Liquidity Market (ILM) on Lido for wrapped staked Ethereum (wstETH), offering a buyout strategy for token holders looking for an alternative to traditional restaking.
According to Seamless, ILM will allow those who stake on Lido to automate leverage and compound positions on wstETH, meaning it will automatically reinvest the returns from their stakes of Ether (ETH) to increase returns. to the user
The difference between this approach and restaking lies in the level of complexity of the investment strategy. The ILM protocol actively manages users’ funds. This makes it possible to borrow with low collateral. This is because funds are kept within ILM. Restaking, on the other hand, involves investing staking ETH to receive additional rewards without requiring advanced strategies.
On-chain lending can be used for various purposes, for example by traders who need leverage or liquidity. and long-term investors This process in Seamless targets single-purpose loans, where lenders know where liquidity is being used And the borrower cannot use it for anything else.
“Because the lending strategy is on-chain in smart contracts, Liquidity Supplier is clear about how the funds will be used,” the company said.
This strategy helps balance risk and reduces collateral requirements, according to Seamless’ Daryl Hok. It was created and voted on by the community. before being written into the smart contract
The protocol is built on the Base network and will be rolled out in mid-2023 by developers from Seashell, RNG Labs and Loreum Labs, as well as contributors from Uniswap, Aave, Ampleforth and CertiK.
from dataDefiLlama’s Seamless currently has a Total Value Locked (TVL) of $41.91 million.
refer : cointelegraph.com
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