Introducing the First-Ever LSD Earn Zone with Holding Interest

What is LSD, and Why Does It Matter?

LSD (Liquid Staking Derivatives) represents a revolutionary innovation in the DeFi ecosystem that solves one of traditional staking's biggest limitations. Traditionally, when users stake assets like ETH or SOL to earn rewards, they must lock up these assets for extended periods, sacrificing liquidity and flexibility. This creates a significant opportunity cost, as stakers cannot access or utilize their capital during the staking period.

Liquid Staking Derivatives fundamentally change this dynamic. When users stake their assets through LSD protocols, they receive derivative tokens (such as stETH for Ethereum or JitoSOL for Solana) that represent their staked position. These derivative tokens maintain their value relative to the underlying staked assets while providing full liquidity. Users can trade, sell, or reinvest these tokens in other DeFi protocols while continuously earning staking rewards from their original stake.

This innovation creates a powerful multiplier effect for crypto asset holders. Not only do they earn base staking rewards from network validation, but they can also deploy their derivative tokens in additional yield-generating activities such as liquidity mining, lending protocols, or trading strategies. This dual-earning potential makes LSD one of the most capital-efficient strategies in modern DeFi.

Key Benefits of LSD

The advantages of Liquid Staking Derivatives extend far beyond simple convenience, offering strategic benefits for both conservative and aggressive investors:

• Stacked Earnings: Earn base staking rewards from network validation while simultaneously reinvesting derivative tokens in lending protocols like Aave or Compound, or providing liquidity in decentralized exchanges. This creates multiple income streams from a single initial investment.

• Instant Liquidity: Unlike traditional staking with lengthy unlocking periods (often 7-21 days), LSD tokens can be sold or swapped immediately on decentralized exchanges. This flexibility allows users to respond quickly to market opportunities or emergency liquidity needs without sacrificing accumulated rewards.

• Market-Proof Strategy: Generate stable, consistent returns during bear markets through staking rewards, while maintaining the ability to capitalize on price appreciation during bull markets. The derivative tokens move with the underlying asset value, providing both income and potential capital gains.

• Capital Efficiency: Maximize the productivity of every dollar invested by utilizing assets in multiple DeFi protocols simultaneously, rather than leaving them locked and idle in traditional staking contracts.

Potential Risks to Consider

While LSD offers compelling benefits, informed investors should understand the associated risks:

• Protocol Security: Smart contract vulnerabilities or exploits in LSD protocols could potentially lead to loss of funds. Mitigate this risk by choosing established, audited protocols with proven track records and strong security measures. Leading platforms integrate only thoroughly vetted LSD protocols with multiple security audits and insurance coverage.

• Market Volatility: Derivative tokens may experience short-term price fluctuations relative to their underlying assets, particularly during periods of high market stress or rapid redemptions. However, arbitrage mechanisms typically ensure that derivative token prices converge with underlying asset values over time. Understanding these temporary deviations helps users make informed trading decisions.

• Liquidity Risk: During extreme market conditions, the liquidity of derivative tokens in secondary markets may temporarily decrease, potentially making large redemptions more challenging. Diversifying across multiple LSD protocols and maintaining reasonable position sizes helps manage this risk.

Supported LSD Earn Products

Leading Web3 platforms have aggregated top-tier LSD protocols from Ethereum, BNB Chain, and Solana ecosystems, offering four distinct earning options that cater to different risk profiles and return objectives:

1. sUSDe (~3.72% APY)

sUSDe is a stablecoin issued on Ethereum by Ethena, pegged to USD-denominated assets. This product offers exceptional stability with minimal volatility, making it ideal for conservative investors seeking predictable returns. The protocol generates yield through delta-neutral strategies that hedge market exposure while capturing funding rates and basis trading opportunities. sUSDe supports cross-chain functionality, allowing users to move their assets across different blockchain networks while maintaining continuous yield generation.

2. USDY (~4.35% APY)

USDY represents a groundbreaking Real World Asset (RWA) token backed by U.S. Treasury securities and short-term government bonds. This product bridges traditional finance with decentralized finance, offering compliance-backed stability and institutional-grade security. The yield is derived from actual Treasury yields, providing a transparent and regulated return mechanism. USDY is particularly attractive for investors seeking crypto-native access to traditional fixed-income returns without leaving the blockchain ecosystem.

3. sUSDS (~6.5% APY)

sUSDS is an advanced stablecoin connected to a sophisticated multi-chain yield aggregator that automatically allocates capital to the most profitable protocols across various blockchain networks. The protocol employs algorithmic strategies to continuously optimize returns by rebalancing assets between lending platforms, liquidity pools, and other yield-generating opportunities. This automated approach simplifies DeFi investing for users who want professional-grade portfolio management without the complexity of manual strategy execution.

4. JitoSOL (~7.68% APY)

JitoSOL is the liquid staking derivative of Jito, the largest and most established liquid staking protocol on the Solana blockchain. This product enhances traditional Solana staking returns through Maximum Extractable Value (MEV) optimization, capturing additional revenue from transaction ordering and block production. JitoSOL holders earn both standard Solana staking rewards and MEV rewards, while maintaining instant liquidity for their staked SOL. The token can be freely traded, used as collateral, or deployed in other Solana DeFi protocols.

How to Access LSD Earn Products

Getting started with LSD earning is straightforward through modern Web3 wallet interfaces. Here's the complete process:

Accessing the Earn Section: Open your Web3 wallet application and navigate to the main wallet interface. Locate the "Earn" section in the navigation menu, which aggregates all available yield-generating opportunities. Within the Earn section, scroll down to find the "Hold to Earn" category specifically designed for LSD products. This dedicated zone displays all available liquid staking options with real-time APY rates and detailed product information.

Purchasing an LSD Product: Browse through the available LSD options, carefully comparing annual percentage yields (APY), underlying asset types, and risk profiles. Each product displays comprehensive details including the protocol provider, current APY, total value locked, and historical performance metrics. Once you've selected a product that matches your investment goals, click the "Continue Buying" or "Invest" button. Enter the amount you wish to invest, review the transaction details including estimated gas fees, and confirm the swap transaction. The wallet will automatically exchange your existing assets for the selected LSD token through integrated decentralized exchange protocols.

Monitoring Earnings and Redemption: After purchasing LSD tokens, your holdings automatically begin generating rewards. These earnings accumulate continuously and are visible on your main wallet page, typically displayed alongside your token balance with real-time value updates. The beauty of LSD products is that rewards accrue simply by holding the tokens in your wallet—no additional staking actions required.

When you're ready to redeem your investment and access your earnings, the process is equally simple. Navigate to the "Swap" page within your wallet, select your LSD token as the source asset, choose your desired destination currency (such as stablecoins or native blockchain tokens), enter the amount to redeem, and confirm the transaction. The swap effectively converts your LSD position back to liquid assets, including all accumulated staking rewards. Unlike traditional staking with mandatory unlocking periods, this redemption process is instant and can be executed at any time.

Expanding the Future of On-Chain Earnings

The launch of dedicated LSD earning zones represents a significant evolution in on-chain asset management, moving beyond basic staking toward sophisticated, multi-layered earning strategies. This innovation democratizes access to institutional-grade DeFi strategies that were previously complex and difficult for average users to implement.

Looking ahead, leading Web3 platforms are committed to expanding LSD offerings across emerging blockchain networks including Tron, Base, Sonic, and Sui. This multi-chain approach ensures users can access optimal earning opportunities regardless of their preferred blockchain ecosystem. The integration roadmap includes partnerships with additional top-tier DeFi protocols, expanding the range of available LSD products to cover more asset classes and risk profiles.

Whether you're a conservative investor seeking stable passive income through stablecoin LSD products, or an advanced DeFi user pursuing maximum yields through higher-risk strategies, modern LSD earning zones provide flexible solutions for every investment approach. The combination of liquidity, competitive yields, and simplified user interfaces makes LSD staking one of the most accessible and powerful tools for growing crypto assets in the current market environment.

To begin exploring these opportunities, ensure your Web3 wallet is updated to the latest version, which includes the enhanced LSD earning interface and expanded protocol integrations. Start with smaller positions to familiarize yourself with the mechanics, then scale your investments as you gain confidence in the technology and strategy.

FAQ

What is LSD (Liquid Staking Derivatives)? How does it differ from traditional staking?

LSD represents your staked PoS assets as tradeable tokens without lock-up periods, maintaining liquidity. Unlike traditional staking where assets are locked, LSD lets you earn rewards while freely trading or using your tokens in DeFi.

What is LSD Earn Zone? How to earn holding interest in Earn Zone?

LSD Earn Zone is a platform enabling LSD token holders to earn passive interest. Simply hold LSD tokens in the Earn Zone to automatically generate holding interest rewards. The longer you hold, the more interest you accumulate.

What conditions must be met to use the holding interest feature in LSD Earn Zone?

Users must hold Liquid Staking Derivatives (LSDs) and meet the platform's minimum holding requirements. Your account must be in good standing with active status to qualify for the holding interest feature.

LSD Earn Zone的持有利息收益率是多少？如何计算？

LSD Earn Zone持有利息收益率年化5%-10%。计算方式为：每月或季度收益÷初始投资金额×12或4，根据锁定期和市场情况实时浮动。

What are the risks of participating in the LSD Earn Zone? What should I pay attention to?

LSD Earn Zone involves smart contract risks and liquidity risks. Monitor your positions regularly, understand the protocol mechanics, and only invest what you can afford to lose. Stay informed about market conditions and protocol updates.

How do I start using the LSD Earn Zone feature? What are the specific operation steps?

Deposit your LSD tokens into the LSD Earn Zone, select your preferred staking duration, and confirm the transaction. Your assets remain liquid while earning holding interest on-chain.