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An aggregator for liquid staking derivatives
LSDAggregator supports the purchase and sale of LSD (wstETH, reETH, sfrxETH) so that StakeSwap's AMM stakes pooled ETH and distributes staking rewards to liquidity providers. The purpose of aggregation is to optimize APR along with diversifying the risk of LSD.
Each LSD has various risks because the way rewards are accumulated and the way validator nodes operate are different. Also, stETH depeg has increased the need for building a portfolio with various LSDs. Aggregating LSDs provides the benefits of risk management.
Strategy defines how rewards are generated. For example, A strategy for Lido implements functions to deposit and buy/sell wstETH with ETH. If user want to direct withdrawal from staking pool, the strategy makes a withdraw request and claim the request after withdraw delay. The amount of ETH allocated to a strategy is determined by strategy weight.
Strategy can be classified into two categories: depositing ETH in liquid staking service and providing liquidity to DEX (e.g. Curve's ETH-stWETH pool). With DEX-strategy, yield comes from staking reward and transaction fees. The latter fluctuates greatly depending on market conditions, but can makes the portfolio diverse.
LSDAggregator is compatible with any other DeFi service, even LPs. Anyone can deposit ETH to earn staking reward managed by the aggregator.