The DIA DAO is a distributed community of contributors building and governing DIA.

DIA is a cross-chain data & oracle platform integrated on 30+ L1/L2s. DIA’s oracles are fully customisable with unmet asset coverage and 100% transparent.

DIA has built a data product to unlock $50bn of idle TVL in LSTs.

Current challenges of Liquid Staking Tokens (LSTs)

Lack of usage and integration into DeFi

Liquid Staked Tokens were designed to enable the utilisation of the liquidity locked in staking contracts and boost capital efficiency for DeFi users. But what can users do with their now liquid tokens? Most of DeFi integrations require price oracles to list LSTs into dApps (lending, options, future, etc) and building reliable price oracles for LSTs is currently challenging due to:

  1. Not enough listings of LSTs in DEXs and CEXs
  2. Not enough trades, volumes and liquidity in (DEX) pools

Lack of transparency on collateral reserves

Recent events in DeFi and TradFi have led to providing proof of reserves becoming a must. In the LST ecosystem, users want to know that the staking protocol minting the LSTs actually holds collateral assets 1:1 and their LSTs are easily redeemable for the underlying asset.

DIA’s solution to the challenge

Fair-Value Price Oracles: Integration into DeFi

Instead of leveraging exchange data to price LSTs, DIA leverages on-chain information to create “fair-value” price oracles. This improves transparency and reduces the risk of market price manipulation creating a safer pricing mechanism for this new asset class.

Proof-of-Collateral: Security and transparency

DIA data feeds for LSTs provide a “Proof-of-Collateral” by performing a collateral check directly on the staking protocol’s smart contracts. This allows protocol operators and users to monitor collateral ratios of LSTs and detect hacks, overissuances and other issues.

Further reading

Learn about the feeds

Learn how DIA xLSD feeds unlock the true potential of Liquid Staked Derivatives by providing collateral-checked, fair-value price feeds.

<aside> 🌐 https://www.diadata.org/xlsd-liquid-staking-oracle/

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Case Studies