The Liquid Staking Tokenized Finance (LSTfi) space is poised to become one of the most significant narratives in 2024. As Liquid Staking continues to expand, so do the opportunities and use cases in the DeFi space that utilize these liquid staking tokens.

In this report, co-authored by HashKey Capital, Pendle, and StakeStone, we examine the top DeFi protocols poised to benefit most from the growth of Liquid Staking. This analysis is crucial, given that the market is expected to grow by hundreds of billions of dollars in the coming years.

The report provides a comprehensive overview of the ecosystem and analyzes the major beneficiaries of the Liquid Staking narrative, including Decentralized Stablecoins, Restaking, Index LSTs, Yield Strategies, Lending, and DEXes.

Readers will gain unique insights into the leaders in the LST market, the market size, and the emerging and major players in the LSTfi ecosystem. The report then delves into each sector, providing valuable insights into the players and their impact on the LSTfi space. Examples include EigenLayer (Restaking), Lybra Finance (Stablecoins), StakeStone (Index LSTs), Pendle (Yield strategies), Aave (Lending), and Curve (DEX).

Finally, the report outlines future trends in this market, providing readers with valuable insights into the evolving landscape of LSTfi.

Key Highlights

• 24% of all Ethereum (ETH) is staked, and this is expected to nearly double to 45% in the imminent 2–3 years. This creates huge market opportunities.

• The Liquid Staking Tokens (LSTs) market is on track to secure a staggering $200 billion in staking.

• The liquid staking industry is poised to rake in an impressive $3 billion in annual fees by the five-year mark.

• Restaking protocols are undeniably revolutionising internet applications by bolstering them with unmatched security, decentralisation, and trust, heralding a transformative era for 2024.

• EigenLayer has swiftly amassed a Total Value Locked (TVL) of $1.7 billion, setting a new precedent in the industry.

• LST-backed stablecoins have witnessed a meteoric rise in 2023, catapulting from a negligible TVL to a robust $400 million by the close of the year.

• The introduction of CDP stablecoins such as eUSD and mkUSD is reshaping the DeFi landscape, capitalising on LSTs to forge highly stable, income-generating financial tools.

• Index LSTs have become a powerhouse, offering a diversified portfolio in staked Ethereum derivatives that now exceeds $1 billion in stakes.

• Yield Strategy DeFi protocols are commanding a TVL that’s hit the $1 billion mark, firmly rooted in LSTs.

• The lending and DEX spheres are dominating the LST finance scene, with an overwhelming $2.5 billion staked and counting.

  
  

Full report -