Create LSD pools on Llamalend e.g. stETH/ETH (non crvUSD)


Create LSD pools on Llamalend e.g. stETH/ETH


Llamlend and crvUSD is a huge revenue source for Curve. DeFi users mainly borrow $. However some DeFi users are using leverage strategies using LSD around difference of yield between Liquid Stake Derivate and borrowing native chain token (e.g. ETH…).
Sometime, there is a depeg between on LSD stETH vs ETH on secondary market, there could be on opportunity for Llama lend to solve the depeg problem with the soft liquidation algorithm.
There is a market already available on DeFi Saver.
DeFi Saver


This proposal would increase revenues and TVL to the DAO.


to be discussed , stETH , rETH,


New revenues streams, new pools, listing of small market size LSD token.
Possible application on new markets with small LSD borowing / lending : stBNB/BNB , stAVAX/AVAX, stMATIC/MATIC, stFTM/FTM …


Time required for implementation, market too small for Curve

dear @michwill

Curve Lend could do a better design than Compound where the 3 LSD stETH,rETH, cbETH have the same parameters and same LTV

Moreover in order to bootstrap, LSD curve could ask for LIDO, RPL and other LSD providers SD, Ankr some token

This leverage loops could use
1 Llamalend
2 curve DEX => swap ETH to LSD in curve pools
3 Deposit again in Llamalend

More fees for Lend and more fees for DEX

That means rewriting LlamaLend a little bit. But yes, I see the point.

Its not the matter of “creating a pool” or “voting”. Need to write a way of taking admin fees properly. Right now Llamalend takes no admin fees to simply work as a crvUSD supply sink (the system makes money this way)

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Thanks @michwill

There is still some interest for this kind of lending pools
Aave have around 1/3 of its TVL in this kind of leverage ETH (and is distributing GHO for stETH/ETH leverage users).
The same pool on Compound has around 130M in TVL.

Moreover with LlamaLend design, Curve could target leverage crypto/crypto positions e.g. (with is better for leverage due to lower volatily).

  • WBTC/ETH Long/short
  • ARB/ETH Long/short
  • OP/ ETH Long/short (if Llamalend is launched on Optimism)

Curve could root the volume on tricrypto pools
and crvUSD/ARB/CRV x crvUSD/WBTC/WETH for ARB/ETH pair