Summary of The LSD Liquidity Wars Are Here | 2023 Outlook

00:00:00 - 00:40:00

The LSD liquidity wars are expected to heat up in the next year, with various projects vying for supremacy in the decentralized games space. Eigenlayers is one project that is expected to do well, thanks to its strong infrastructure.

• 00:00:00 The LSD liquidity wars are here, and they're about to get really intense. With Shanghai's imminent upgrade enabling withdrawals, a lot of Ethereum holders are starting to worry about unloading their assets. Meanwhile, liquid staking derivatives are starting to take off, thanks to their improved capital efficiency and immediate liquidity. This is sure to bring about a boom in the state of Ethereum, and liquid staking will be at the heart of it.
• 00:05:00 The LSD liquidity wars are here, with 60% of the liquid staked eth market share controlled by Lydo and Rocket Pool, Coinbase is pushing its users into this market. There is an interesting trade-off between yield and convenience in this space, with Coinbase taking a 25 fee while Lido and Frax Eth take 10%.
• 00:10:00 The LSD liquidity wars are here and in the next year, Coinbase is poised to take a significant share of the market. Other competitors, such as curve, are also expected to see significant growth.
• 00:15:00 The author predicts that an OG D5 protocol, or "alter one," will announce plans to launch as an L3, and that this will lead to a resurgence in organic revenue for trading fees. He also predicts that various data availability structures will be launched in the system, including validiums. Finally, he predicts that privacy will be enhanced with L3 scaling Solutions, and that cheaper interoperability between L2, L3, and L3 to L3 will be a major trend in the year 2023.
• 00:20:00 In 2023, app chains will become a major force in the blockchain space, as developers build applications that are specifically tailored to specific chains. Dydx, a company that is migrating its Stark Stark X blockchain from Ethereum to its own Cosmos chain, is likely to be a major success story. Additionally, cost-effective app chains will be launched by a number of companies, including Mars, Babylon, and stride.
• 00:25:00 Sean predicts that app chains will proliferate in the next year, and that this will create opportunities for larger, more decentralized protocols. Chain analysis provider Chainalysis sponsors the show.
• 00:30:00 The LSD liquidity wars are here, with promising developments for 2023. While some believe that centralized limit order books are necessary, others believe that the introduction of more "non-correlated" assets makes central limit order books obsolete. In terms of uniswap, while they are working on a front end, it is not yet fully decentralized.
• 00:35:00 LSD, or "liquidity tokens," are expected to experience high volatility in the next few years due to developments in the Ethereum network. Proto-Dank and sharding are expected to increase the value of staked LSDs, and Ethereum's vision of becoming a "roll-up centric layer" is expected to lead to further decentralization.
• 00:40:00 In 2023, the LSD liquidity wars will be in full swing as different blockchain projects attempt to establish themselves as the go-to choice for decentralized games. One project that stands out is eigenlayers, which has already built out the infrastructure needed for a successful game marketplace.