Introducing Althea Finance: The First All-In-One LSTfi Solution For The Metis Ecosystem, Unlocking Liquid Staking Yield & Liquidity
TL;DR
- With the introduction of their decentralized sequencer and $100m+ of grants on offer, liquid staking is set to explode on Metis, with the launch of multiple METIS LSTs/LRTs.
- This creates an urgent need for LSTfi/LRTfi solutions where holders of new METIS LSTs/LRTs can deploy their holdings to access liquidity & amplify yields
- Althea Finance is meeting this need with the first all-in-one LSTfi/LRTfi solution for the Metis ecosystem
- This will combine a Prisma-style LST-backed stablecoin and a Pendle-style yield market in one product to unlock liquid staking yield and liquidity on Metis.
- Finally, the THEA token at the heart of the Althea Finance ecosystem allows holders to earn revenue share, amplify rewards and participate in governance decisions.
LSTfi Is Coming To Metis & Althea Finance Is Leading The Way
Metis recently made history by introducing the first ever decentralized sequencer on an Ethereum Layer 2. This paves the way for users to start staking their METIS tokens, stimulating demand for METIS LSTs, which will be supported by $100m of grants form the MetisDAO Foundation. In turn, the rise of METIS LSTs/LRTs will lead to a need for LSTfi solutions where METIS LST/LRT holders can access liquidity and amplify their yields.
Althea Finance will be the first all-in-one LSTfi solution for the Metis ecosystem, combining an LST-backed stablecoin with a native yield market to deliver everything Metis LST holders will need to maximize their yields and unlock liquidity.
Seizing One Of DeFi’s Biggest Emerging Opportunities
To estimate the size of the potential market for LSTfi solutions on Metis, one need only look at how the LSTfi sector has flourished on the Ethereum mainnet. 4 of the top 10 projects by TVL on the Ethereum mainnet are LSTfi/LRTfi projects, with a combined TVL of $50bn+ across all LSTfi protocols.
With the MetisDAO Foundation allocating $100m in grants to fund its expansion, and LSTfi being the main focus, there is an unprecedented opportunity for first-movers to grab a similar market share. The entire value of LSTs lies in the fact that they make staked tokens and rewards liquid so that they can be used on further yield-bearing activities. Therefore as METIS LST offerings begin to go live on Metis, there will be an instant demand to put them to use.
This is where Althea Finance comes in.
Combining An LST-Backed Stablecoin Solution With A Native Yield Market To Deliver The First All-In-One LSTfi Solution For The Metis Ecosystem
To ensure that Metis LST/LRT holders will have all the options they need to maximize the yields and access liquidity, Althea Finance will be providing an entire suite of LSTfi/LRTfi products focused around:
- A Multi-Asset CDP Stablecoin: Holders of both METIS and METIS LSTs/LRTs (and other derivatives) will be able to mint Althea Finance’s CDP stablecoin, aUSD. As liquidity scales, users will also be able to mint aUSD using any asset on both our native yield market or external DEXs in the Metis ecosystem.
- A Native Yield Market: Bringing Pendle-style yield market dynamics to Metis, our native yield market will allow users to speculate on the future yields of LSTs and other yield-bearing assets in the Metis ecosystem.
On the Ethereum mainnet, Prisma cornered the market for an LST-backed stablecoin and Pendle gained dominance as a yield market. Whereas on Metis, Althea Finance is positioned to capture both of these markets in one overarching product.
Furthermore, bringing both a stablecoin and yield market solution together under one roof will also unlock a range of exciting synergies and innovations that have not been achieved by prior standalone products on the mainnet. For example, users will be able to deploy assets from our yield-market as collateral for minting aUSD to boost yields by leveraging Althea’s proprietary interest rates market.
Finally, the unique structure of Althea Finance will allow it to emerge as the central hub of the entire Metis ecosystem, by offering:
- A Stable Unit Of Account: As a non-rebasing stablecoin with yield accrual upon redemption, aUSD can become the stable unit of account for the entire Metis ecosystem.
- A Foundation For Lending, Borrowing & Leverage: As the central stablecoin for Metis, aUSD will also unlock the potential for a variety of lending, borrowing and leverage options across the chain.
- Secondary Debt Market: Althea Finance will also have its own in-house secondary debt market, creating new arbitrage opportunities for users.
- LST Yield Aggregator: By accepting all yield-bearing assets as collateral, aUSD will become a de facto yield aggregator for the Metis liquid staking sector.
- Sustainable Revenues: Althea will have multiple revenue streams from minting fees, redemption fees and borrowing interest fees. This means it can provide a sustainable income for governance token holders and voting incentives for liquidity that don’t rely solely on the native token.
Offering A Governance Token That Offers Real Yields & Meaningful Governance Rights
At the heart of the Althea ecosystem lies the THEA token, which offers both revenue share, governance rights and multiple other avenues of utility. THEA token holders will get:
- Revenue Share: THEA holders who stake their tokens will receive 50% of protocol revenues from minting fees, borrowing fees, trading fees, redemption fees and more.
- Governance Rights: THEA stakers will also be able to vote on key aspects of the protocols functioning, including how rewards are allocated to protocol users.
- Rewards Boosts: Locking THEA tokens will also entitle holders to a multiple on any yields generated on the Althea protocol, incentivizing protocol users to become THEA holders and governance participants.
Althea will also offer oTHEA tokens which serve as a perpetual call option on the native THEA token. oTHEA grants its holders the right to acquire THEA tokens at a market discount, presenting an attractive arbitrage opportunity that can translate into immediate gains. As there is a fee for redeeming oTHEA into THEA, this also creates further revenues for the Althea ecosystem.
In summary therefore, the THEA token provides an opportunity to earn real yield, amplify rewards, and participate in governance decisions, whilst also incentivizing protocol users to become Althea stakeholders.
Presale Details & More Coming Soon
The current article just scratches the surface on what Althea Finance has to offer. In forthcoming articles we’ll be going into further detail on some of its unique features, including a deeper dive into its innovative dual-collateral minting model, secondary debt market, and sustainable revenue generation streams.
We’ll also be announcing details of our forthcoming presale.
In the meantime, you can hear about all the latest developments on the project at:
Twitter: https://twitter.com/altheafinance
Docs: https://althea-protocol.gitbook.io/
Website: https://altheafinance.com
