KEY TAKEAWAYS
- Ozean integrates Lido’s wstETH into its Oxygen liquidity layer, enhancing utility and user engagement within its ecosystem.
- Lido’s liquid staking protocol, with a TVL of $35 billion, strengthens its DeFi presence through this integration.
- The Oxygen liquidity layer combines RWAs, tokenized treasuries, and crypto assets to support swaps, lending, and collateralization.
- Ozean aims to revolutionize DeFi by integrating Real World Assets in a compliant and user-friendly manner.
Ozean, the blockchain platform focused on Real World Asset (RWA) yield, has announced the integration of Lido’s wstETH onto its Oxygen liquidity layer. This development marks a significant step in enhancing the utility and user base of Lido’s products within Ozean’s expanding ecosystem.
Lido, a leading liquid staking protocol, boasts a Total Value Locked (TVL) of $35 billion and operates with a network of over 200 global Node Operators. This ensures decentralization and security across its supported blockchains. The integration of wstETH, a tokenized version of Lido’s stETH, offers additional utility and flexibility within the decentralized finance (DeFi) ecosystem.
Oxygen: A Sophisticated Liquidity Mechanism
The Oxygen liquidity layer, known as O2, is designed to supply the necessary liquidity to fuel the growth of the Ozean ecosystem. It combines RWAs, tokenized treasuries, liquid crypto assets, and yield-bearing tokens into a unified basket. The inclusion of wstETH alongside other assets like Ethena’s USDe, Agora’s AUSD, and Mountain Protocol’s USDM supports key functionalities such as swaps, lending, and collateralization.
O2 not only provides liquidity but also generates yield from assets like lending protocol tokens and tokenized treasuries. This yield is reinvested, enhancing liquidity and offering additional earning opportunities for contributors. Jakob Kronbichler, CEO & Co-founder of Clearpool, highlighted the importance of partnering with innovative DeFi protocols to bridge them with the RWA ecosystem.
Enhancing DeFi with Real World Assets
Ozean aims to revolutionize DeFi by integrating RWAs in a compliant and user-friendly manner, allowing users to earn native yield on-chain automatically. As a permissionless Ethereum Layer 2, Ozean features an optional compliance layer designed to foster interoperability among permissioned protocols. This enables the creation of a robust ecosystem where RWAs can be traded or used as collateral with enhanced functionalities.
One of O2’s key features is its dynamic rebalancing mechanism, which incentivizes pool assets to remain within soft target allocations. The first Ozean Improvement Proposal (OIP 001) outlines the ideal asset weighting for the initial launch of O2, further supporting the ecosystem’s growth.
The integration of Lido’s wstETH into Ozean’s Oxygen liquidity layer was announced here.
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