DeFi is the primary manifestation of decentralized finance, which is a new financial system built on the foundation of cryptographic assets and decentralized structures. Since the DeFi Summer, DeFi has experienced unprecedented growth, with metrics such as Total Value Locked (TVL) and trading volume achieving exponential growth. This has propelled the on-chain world into the era of the "Cambrian Explosion."
Indeed, after a brief period of explosive growth, the DeFi sector has gradually declined since last year, and liquidity has become a major obstacle to its long-term development. Despite continuous narrative innovation in DeFi, such as the thriving LSD track, liquidity issues are inevitable for assets like LST and LSDFi protocols.
Addressing the liquidity problem in the DeFi sector is seen as crucial for its next phase of development. While the previous generation of Liquidity-as-a-Service (LaaS) protocols like Olympus and Tokemak provided early solutions and insights for DeFi liquidity pools, their overall effectiveness has been questionable, especially with the decline in DeFi's total value locked (TVL). The TVL and incentives they can provide have been difficult to sustain (referring to liquidity acquisition) in the face of decreasing overall TVL. Potential participants and investors lack the motivation to engage due to insufficient incentives. Therefore, we believe it is necessary to design a new liquidity mechanism that has strong value capture capabilities and a solid foundation. Olympus, Tokemak, and similar protocols share many similarities in their mechanisms, which can be categorized as the previous generation of LaaS protocols. Both early liquidity mining, which mainly relied on "mercenaries," and the LaaS track used tokens as the primary incentive. However, during a market downturn, these approaches have proven ineffective.
The new paradigm of liquidity in 0xLSD.
0xLSD has pioneered a novel approach to liquidity with its liquidity aggregation protocol. The protocol leverages an AI-powered large-scale model developed by the 0xLSD team and utilizes deep learning algorithms to establish an intelligent trading system. This system autonomously learns and identifies market conditions and trends, allowing for swift strategy adjustments and enabling more accurate and timely trading decisions. Furthermore, the intelligent trading system automatically detects and mitigates potential trading risks, providing traders with a safer trading environment.
The AI algorithmic investment strategy itself holds significant potential for investment returns. By conducting precise and comprehensive market analysis, it can better identify potential investment opportunities, react swiftly to market fluctuations, and adjust investment strategies promptly, thereby achieving better investment returns.
Based on this model, 0xLSD offers users a service for engaging in various derivative trading activities using LSD and allows them to enjoy stable staking rewards through aggregated yield farming pools. These rewards are significantly higher than the mining rewards currently available in the DeFi market, while also providing further risk management capabilities.
Traditional liquidity systems typically rely on token incentives, resulting in a lack of liquidity utility during market downturns. However, 0xLSD can provide users with long-term, stable, and reliable returns based on AI-driven strategies. Regardless of market conditions, it can offer attractive incentives and generate continuous liquidity. Currently, there are few on-chain facilities that can achieve stable profitability based on AI technology, and 0xLSD is an early player in this field.
As an on-chain infrastructure, 0xLSD utilizes smart contract technology to ensure fair, transparent, and tamper-proof transactions. The contract terms are automatically executed by smart contracts, eliminating the possibility of human intervention and errors, thereby guaranteeing the validity and reliability of contracts. Moreover, smart contract technology automates processes such as fund management and transaction settlements, enhancing transaction efficiency and security.
Simultaneously, 0xLSD adopts a distributed system architecture, providing high availability, concurrency, and fault tolerance. The platform incorporates the latest networking technologies to quickly respond to user operations and support large-scale concurrent transactions, ensuring the efficient operation of the trading system. The system architecture of 0xLSD allows for the free combination of liquidity for cryptographic assets, improving the ecological premium of project assets. By continuously leveraging platform funds to support project development, it can provide the platform itself with more powerful profit capabilities.
0xLSD is highly optimistic about the long-term development potential of the LSD track and is providing support for its sustainable growth as an entry point for driving the sustainable development of the DeFi sector. 0xLSD will extensively support various LST assets and provide liquidity for these assets. Users holding LST assets can automatically earn substantial profits through the AI component. Based on this foundation, the 0xLSD protocol is also providing liquidity for LSD protocols, laying the foundation for the long-term development of such ecosystems.
A fresh continuation of "Intentional" narrative.
The latest article "Collaborate with Paradigm" released by Paradigm, a top-tier crypto venture capital firm, introduces ten potential trends that they are particularly focused on in the crypto field. The first trend highlighted is "intent-centric protocols and infrastructure."
Paradigm's perspective on "intent-driven trading" argues that the core focus in the domain of account abstractions should no longer revolve around precise "transaction" processes but rather on the ultimate "intent" of user transactions. This concept folds in the intricate transaction steps brought about by the native complexities of cryptography. Within the narrative logic of this project, "intent" represents the desired outcome that users expect, while "transaction" encompasses the precise steps required to achieve that outcome. For instance, if a user intends to perform an on-chain token transaction, the resulting transaction that fulfills the user's intent represents the ultimate goal. However, under this "intent," the corresponding "transaction" process may involve a series of complex, time-consuming, and high-threshold operations, including potential cross-chain interactions and gas payments.
"Intent" allows users to define the outcomes they expect to achieve on the blockchain and outsource the task of realizing these outcomes to third-party "solvers" who interact directly with the network and protocols on behalf of the users. Ultimately, this abstraction layer aims to make Web3 applications feel like regular applications, reducing the existing technical learning curve and potentially attracting millions of new users to the Web3 world.
In practice, user transactions and payments often revolve around the goal of profitability. 0xLSD eliminates all the cumbersome steps and allows users to enjoy profits within its system. The 0xLSD protocol fulfills the fundamental elements of the "intent" world. Through 0xLSD, users only need to input their requirements on the frontend interface to seamlessly and effortlessly achieve one-click profits, without having to worry about the intermediate processes related to transaction steps and strategies. In this process, users do not directly interact with the dapp but drive the "solver" (0xLSD AI system) to execute specific actions by approving their intent. Once the transaction is completed, assets are authorized and released, resulting in direct profits.
The 0xLSD AI system acts as a distributed executor or "solver" in the entire intent-driven transaction process. It utilizes deep learning algorithms to establish an intelligent trading system that can automatically learn and identify market trends, quickly adjust strategies, and make more accurate and timely trading decisions. This enables the intent-driven world of 0xLSD to achieve a positive feedback loop and self-sustainability. In future iterations, 0xLSD is expected to fulfill a richer set of intent graphs.
Overall, Paradigm's narrative of "intent-driven trading" presents a promising concept with significant potential to bring about a transformative change in the Web3 world. The AI-powered 0xLSD aligns with this narrative by autonomously executing the cumbersome transaction steps and generating substantial profits based on users' intent. It also addresses liquidity issues. The concept of "intent" serves as a guiding factor throughout the entire transaction process, showcasing its advanced nature and trendiness. In the long run, the 0xLSD ecosystem will continue to contribute to the sustainable development of the Web3 world.
