Liquid Assets

Optimizing Yield through Tokenized Staking and Cross-Chain Replication.

Liquid assets enable users to earn staking rewards while maintaining the flexibility to access their funds. Through tokenized assets and advanced multi-protocol strategies, liquid assets work across various chains, ensuring that users can optimize returns in a decentralized environment without being tied to a single chain or protocol.

Tokenized Assets for Yield Generation

Liquid assets are tokenized representations of staked or lent assets, such as xETH or xwBTC, which are tokenized forms of Ethereum and Bitcoin on networks like Radix. These tokenized assets can be moved across various lending and staking protocols to generate daily staking rewards while maintaining liquidity. For example, users can convert xETH into stETH, a tokenized form of staked Ethereum, to use as collateral in lending protocols. This strategy amplifies staking yield by enabling leveraged positions while utilizing cross-chain interoperability to generate optimized returns.

Tokenized Asset Deposits

All deposits in liquid asset strategies are tokenized, meaning users receive a token that represents their deposit. These tokens are redeemable for the original deposit plus any accrued staking rewards or interest. The tokenized nature of these deposits ensures that users maintain flexibility, allowing easy access to their funds and the ability to withdraw or transfer assets across different protocols and chains.

Multi-Protocol Strategy for Optimized Yield

Liquid assets are utilized across a range of DeFi protocols to maximize yields. By moving tokenized assets into lending pools and staking protocols on various blockchains, users can leverage the best available interest rates. Supported protocols span multiple chains, including Compound, AAVE, Spark Protocol, and Morpho, among others. Through a multi-protocol strategy, these assets can be used to earn staking rewards or interest in the most competitive environments, ensuring that the yield generation is both diversified and optimized.

Cross-Chain Replication and Lending

The real power of liquid assets lies in their ability to be replicated and lent across different chains. For example, assets like xETH and xwBTC can be moved across chains such as Ethereum, Radix, Avalanche, and Binance Smart Chain, where they can participate in lending protocols or liquidity pools. By bridging these tokenized assets across ecosystems, users can tap into a broader range of DeFi opportunities, expanding their potential returns. This cross-chain liquidity ensures that liquid assets are never idle, and users can continually benefit from the best opportunities available across the DeFi space.

Leveraged Strategies and Liquid Asset Amplification

Liquid assets can also be leveraged to further amplify yields. By using tokenized assets as collateral in lending protocols, users can borrow additional funds to increase exposure to staking or lending opportunities. For example, xETH can be used as collateral to borrow more ETH, which can then be converted into stETH and placed back into the staking or lending pool. This process creates a leveraged position, compounding returns on staked assets and lending strategies. The ability to leverage tokenized assets across multiple protocols allows users to optimize their yield generation with minimal risk exposure.

Smooth Withdrawal Mechanism

While leveraging strategies and cross-chain activities can sometimes create limitations on liquidity availability, the platform ensures smooth withdrawals through multi-protocol support and advanced rebalancing features. Liquid assets are managed in a way that balances yield generation with liquidity needs. By using an enhanced withdrawal pool and periodically rebalancing assets, the system ensures that funds can be efficiently accessed when needed.