LST / LRT User Benefits on Prime
Specific for users of LRT / LSTs - there are a few unique value propositions on Prime that are not available anywhere else in DeFi (or even crypto as a whole) - that massively increase utility for users.
0 slippage trades between LST / LRT and base asset: Prime’s native CeDeFi orderbook engine enables market makers to execute HFT strategies to enable 0 slippage trades on pegged assets - that are cost prohibitive on other chains. These strategies work for any pegged asset, regardless of existing market / DEX liquidity
Higher Leverage Caps for Looping: Due the maximized liquidity profile Prime is able to create for LSTs / LRTs, we can enable higher leveraged caps for looping strategies - multiples higher than what is enabled on Aave.
Large Supply of Base Asset for Looping: Due to posting of collateral of base asset by users running other strategies like margin trading or basis trading there will be a large supply of base asset available for Looping.
Use of ETH & SOL LST / LRT in BTC or Stable Strategies: Prime’s cross-margining uniquely enables these types of strategies that in other ecosystems would run significant risk of liquidations. Through these strategies - LST/LRTs can tap yield demand on 2 of the 3 biggest markets: BTC & stables.
Stack Stable Strategy Yield on Top of LST / LRT Yield: Similarly Prime’s cross-margining enables strategies that start with LST / LRTs but then stack stable strategies on top without risk of liquidation. This will enable LSLT / LRT users to earn even more yield.
Use of LST / LRT as Collateral in Perp Trades: User's LST / LRT positions will be counted as with higher collateral ratios then available on any other perp DEX driven by Prime's ability to offer a maximized liquidity profile.
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