With the emergence of LSDFi, and the ability to unstake ETH after the Shanghai update the Defi space has seen many innovations particularly CDP holders. As such the crypto cashback space has a new innovation approaching that bridges the gap between LSDFi loan providers and crypto card users. The unique strategy is called LSDFi cashback. It leverages the strengths of both groups to create a mutually beneficial system.
1. LSDFi CDP users:
Our approach lets LSDFi loan providers, like Lybra Finance and Raft Finance, use their yield bearing stablecoin in a unique way that allows them to earn yields through their stablecoins as well as enchance this APY in our BCK Savings Account. They can also use their stablecoins in a real world use case, by allowing part of their yields to be used to pay for cashback.
2. Crypto Card Users:
Compared to crypto loanees, crypto card users, based on average UK savings statistics, are likely to have less significant crypto assets or savings.
This difference creates an opportunity for synergy between these two distinct groups.
3. Bridging the Gap:
Bound Finance has founded LSDFi Cashback which is a designed marketplace-like infrastructure to connect these two groups.
We use the collateral in the form of existing LSDFi Stablecoins like $eUSD from crypto loanees to generate rewards, which in turn fund the cashback for app users and we incentives the LSDFi stablecoin deposits by providing emission boosts .
4. High-Yield, Low-Risk Cashback Service:
We'll delve deeper into the technical aspects of our strategy in this white paper, detailing how we leverage these advancements to provide a high-yield, low-risk cashback service.
Our model promotes crypto loanees to opt for crypto loans that yield returns through their collateral and stablecoin loan, and it encourages app users to take advantage of high cashback rates and boost their spending.
Stay tuned for a detailed explanation of our token and protocol economics as we navigate through this white paper.