Expanding the Utility of Collaterals

Liquid Staking Tokens (LSTs) form the backbone of the Davos Protocol's strategy, enabling a harmonious blend of DeFi composability and increased yield generation. LSTs, symbolizing staked assets and their accruing rewards, offer a dual benefit. Users deploying these tokens as collateral can retain the inherent staking rewards while also accessing the protocol's stablecoin, DUSD, for borrowing purposes.

Davos Protocol's approach extends beyond LSTs, integrating a variety of reward-bearing assets, including those from leading lending protocols. This inclusion not only diversifies the collateral base but also aligns with the individual risk profiles of these assets, offering tailored borrowing rates. This facilitates a more dynamic and efficient borrowing landscape within the protocol, accommodating a broader range of user preferences and risk appetites.

Davos Protocol has also integrated Liquid Restaking Tokens (LRTs) among collateral types. LRTs represent a significant step forward in staking, since users may now re-stake their staked assets on platforms like EigenLayer, allowing them to participate in securing other networks or services while maintaining liquidity. This integration represents a major advancement in DeFi composability, enabling users to stack their returns over many layers of yield generation. With LRTs, users actively participate in Ethereum's network security while also engaging in other DeFi activities, amplifying their earning potential.

In essence, the Davos Protocol is not just leveraging from Liquid Staking Tokens (LSTs); it's a comprehensive platform that evolves alongside the DeFi space, actively incorporating LSTs, Liquid Restaking Tokens (LRTs), and other yield-bearing assets. This inclusive approach not only showcases Davos commitment to being at the forefront of Defi but also capitalizes on current trends where Defi is increasingly built upon versatile, yield-bearing assets. Such integration allows users to maximize their earnings by employing unique strategies like traditional liquid staking, greater lending protocol rewards, and the cutting-edge realm of liquid restaking.