IntroductionLista DAO is an open-source liquidity protocol developed to allow its users to collateralize their crypto assets and borrow a decentralized stablecoin called lisUSD. The DAO aims to improve financial efficiency and decentralization within the cryptocurrency ecosystem by combining elements from existing DeFi protocols and introducing innovative features.
This protocol enables users to earn yields on collateralized crypto assets, such as BNB, ETH, and other stablecoins, and borrow through a decentralized stablecoin, lisUSD. The protocol uses a dual-token model involving lisUSD and LISTA. lisUSD is termed a “destablecoin” because it prioritizes decentralization and accepts slight price fluctuations instead of maintaining a strict peg to fiat currencies. The protocol operates on the BNB Chain and plans to expand to other blockchain networks in the future
What is ListaDAO (LISTA)?Lista DAO is a decentralized organization on the BNB Chain, with future plans for multi-chain expansion. It uses a dual-token system consisting of LISTA and lisUSD; the first serving as the DAO’s governance token, allowing holders to participate in protocol decision-making, and the latter acting as a decentralized stablecoin that can be used for borrowing and for paying for transactions within the ecosystem.
History and ProjectToru Watanabe is the founder and CEO of Lista DAO. Terry Huang, the co-founder and COO, previously served as the regional manager of Binance and the strategic director of Chainnews. He holds a master’s degree in physics from Tamkang University.
This organization aims to address the limitations of traditional stablecoin models, namely custodial risks and inefficiencies from over-collateralization. It integrates liquid staking, decentralized governance, and collateralized debt positions (CDPs) to provide a secure and adaptable financial system for managing and using crypto assets.
The protocol allows users to earn yields on collateralized assets and borrow lisUSD, optimizing capital use in the DeFi ecosystem, offering a comprehensive ecosystem that combines liquid staking, decentralized stablecoins, and collateral-backed borrowing. The protocol is built on the BNB Chain and employs a dual-token system with LISTA and lisUSD, providing users with various ways to interact with the platform and earn rewards.
Goals and VisionLista’s primary goals include enhancing capital efficiency, promoting decentralization, and creating incentives for community governance.The DAO prioritizes decentralization, aiming to reduce the overwhelming risks and costs that tend to be associated with centralization, and encourages community participation in governance through the LISTA token.
Technical Infrastructure and Token ModelLista’s Technology and ProtocolsLista DAO operates on the BNB Chain, taking advantage of its infrastructure to facilitate its high-speed transactions and maintaining low fees, extending the MakerDAO model to support decentralized and collateral-backed stablecoins. The financial operations run in the blockchain are managed through smart contracts, such as staking, borrowing, and yield farming, ensuring a decentralized and secure environment for users, while it also provides integration with multiple DeFi applications that allows users to maximize the utility of their assets through staking and liquidity provision.
BNB blockchain offers good capabilities for efficient and scalable operations, which enhances the protocol’s ability to handle large transaction volumes effectively, allowing it to interact with other DeFi applications, offering users more opportunities for asset and project engagement.
Lista plans to expand its operations to multiple blockchain networks beyond the BNB Chain, to increase interoperability and accessibility, enabling users from different blockchain ecosystems to participate in the protocol. Expansion plans include transitioning to the Liquity codebase and launching on the Ethereum Mainnet, a strategic move intended to broaden the reach and utility of the organization’s services, making them available to a wider audience.
The protocol’s multi-chain strategy will likely enhance its integration capabilities and provide more flexibility for users across various blockchain platforms.
Tokenomics of LISTA and lisUSDLista uses a dual-token model, LISTA and lisUSD. LISTA is the governance token, allowing holders to participate in protocol decision-making, and providing economic incentives to encourage user participation and further contributions to the ecosystem. The lisUSD token is a decentralized stablecoin used for transactions and borrowing within the protocol.
Unlike traditional stablecoins that aim for an absolute peg to fiat currencies, lisUSD allows for some price fluctuations while maintaining stability through decentralized collateralization.
Total Supply and Distribution of LISTA Tokens
Lista DAO has issued a total of 10 billion LISTA tokens, which are distributed to support various aspects of the project. The initial allocation includes a substantial portion for early investors and strategic partners, as well as for the team to ensure continuous development and operational efficiency. 10% of the total supply is allocated for airdrops to incentivize early adopters and promote broader community participation, and 10% is set aside for a Binance Megadrop to further drive engagement and awareness.
Governance, Development and Community IncentivesThe allocation for governance involves distributing a significant amount of tokens to holders who can then use them to vote on important protocol decisions, which, as is common to DAOs, ensures that the community has a voice in which direction the project ultimately moves towards, promoting decentralization.
Development funds are designed to support ongoing improvements and innovations within the protocol, such as updates to the smart contracts and enhancements to user interfaces. Community incentives include rewards for staking, participating in liquidity pools, and engaging in various platform activities, which help maintain an active and engaged user base.
In order to maintain the value and stability of the LISTA tokens, there are several important strategies in place. One method is the buy-back and burn mechanism, where a portion of the protocol’s revenue is used to purchase LISTA tokens from the market and permanently remove them from circulation to reduce supply and help increase the token’s value over time. Staking and liquidity provision rewards keep tokens in active use within the ecosystem, reducing the likelihood of significant sell-offs.
The integration of these mechanisms ensures a balanced and stable economic model that supports the long-term health of the protocol.
Economic Incentives and Participation RewardsEconomic incentives are very significant to Lista DAO’s strategy to create more user engagement and participation in its communities and in the ecosystem. Users are able to stake their crypto assets in the protocol to earn LISTA tokens, providing them with a return on their holdings. Yield farming opportunities allow users to provide liquidity in various pools and earn rewards in the form of LISTA tokens. The protocol also hosts special events and campaigns, such as the Cosmic Adventure Challenge, where participants can complete tasks and quests to earn additional tokens.
These incentives create a dynamic and interactive ecosystem that encourages continuous user involvement. By implementing these comprehensive tokenomics strategies, Lista DAO aims to create a sustainable economic system and engage its user base in a structured approach that supports the project’s growth while enhancing its long-term viability.
Collateral and Borrowing MechanismLista DAO allows users to borrow its stablecoin, lisUSD, using different types of collateral. Accepted collateral includes cryptocurrencies such as Binance-Pegged Bitcoin (BTCB), BNB, ETH, and SolvBTC. The protocol also supports other decentralized and liquid-staked assets as collateral, which enhances users’ flexibility in leveraging their crypto holdings in exchange for liquidity.
To collateralize assets on Lista DAO, users need to deposit their chosen collateral into the protocol’s collateral vault, known as CeVault. The process begins by transferring the supported collateral assets into the vault. Then, once deposited, these assets are locked in a smart contract, ensuring their security and preventing unauthorized access. Users can then borrow lisUSD against their collateral. The amount of lisUSD that can be borrowed is determined by the collateral value and the required collateralization ratio, which typically ranges around 200%.
Price Stability of lisUSDLista DAO employs multiple mechanisms to ensure the price stability of its stablecoin, lisUSD:
Over-Collateralization: All lisUSD is backed by over-collateralized assets. Users must deposit more value in collateral than the amount of lisUSD they borrow. This ensures that even if the value of the collateral decreases, the stablecoin remains adequately backed.Stability Fees: Borrowers are charged stability fees, which act as interest on the borrowed lisUSD. These fees are adjusted based on market conditions to maintain the peg to USD.Peg Maintenance: The protocol uses algorithms and market incentives to keep lisUSD pegged to USD. If the price deviates, the system automatically adjusts borrowing rates and collateral requirements to encourage actions that bring the price back to its peg.Auction Mechanism: If significant collateral value drops, the protocol can auction off collateral to ensure that the stablecoin remains fully backed and stable.
Borrowing Mechanics and FeesBorrowing lisUSD involves several steps and fees.
Users start by depositing the minimum required collateral. For instance, a minimum of 0.1 weETH or 0.001 SolvBTC is required for their respective collateral types. After the collateral is deposited, users can initiate a borrowing transaction, specifying the amount of lisUSD they wish to borrow. The borrowing process incurs a fee of 12.5% of the borrowed amount, which is applied to maintain the protocol’s sustainability and incentivize liquidity providers.
There are no withdrawal fees for collateral, making it straightforward for users to retrieve their assets once the loan is repaid.
Liquidation Process and Associated RisksLiquidation is a very important risk management mechanism within Lista DAO. For instance, if the collateral value falls below the required minimum collateralization ratio, typically set at 150% to 200%, the loan position is subject to liquidation. Then, when liquidation occurs, the collateral is used to cover the outstanding debt, and the user’s loan position is closed. The borrower retains the borrowed lisUSD, but the collateral is forfeited to compensate liquidators. This process ensures the protocol remains solvent and can honor its obligations to other users.
However, protocol users must monitor their collateral’s value closely to avoid liquidation. The protocol operates as a non-custodial system, meaning that all transactions and collateral management are governed by smart contracts without human intervention. While this helps to enhance security, it also means that users are fully and solely responsible for managing their loan positions to prevent liquidation of their assets.
By offering various collateral options, a clear collateralization process, and liquidation mechanisms, Lista DAO provides a secure and flexible borrowing platform for users looking to leverage their crypto assets while minimizing risks associated with decentralized lending.
Yield Farming and StakingLista DAO offers different staking options, allowing users to earn rewards by staking different types of cryptocurrencies. Users can choose traditional staking, where assets such as BNB or ETH are locked up to earn rewards and liquid staking.
Liquid staking enables users to stake their assets while retaining liquidity through derivative tokens. For instance, staking BNB can yield slisBNB, a liquid staking token that can be utilized across various DeFi platforms for additional earning opportunities.
Yield farming is a significant feature in Lista DAO, especially involving its native tokens, lisUSD and slisBNB. This feature allows users to provide liquidity to specific pools and earn rewards in return; they can provide liquidity for pairs like lisUSD and slisBNB on various decentralized exchanges, resulting in earning trading fees and additional rewards in the form of LISTA tokens. This incentivizes liquidity provision while enhancing the utility and demand for lisUSD and slisBNB within the ecosystem.
Multiple platforms support yield farming and staking for Lista DAO’s tokens. Users can stake lisUSD and slisBNB on decentralized exchanges, such as PancakeSwap, Wombat Exchange, ThenaFi, Curve, and Uniswap.
These platforms offer liquidity pools where users deposit their tokens to earn yields. The specific pools available on each platform may vary, providing users with diverse options to maximize their particular returns.
Lista DAO Future RoadmapLista DAO has outlined a roadmap for its development, with plans designed to ensure that the protocol grows and adapts to the market.
For the second quarter of 2024, Lista DAO plans to develop a secure and stable protocol with substantial liquidity and utility for its decentralized stablecoin, lisUSD, on the BNB Chain. This initiative involves forming strong partnerships and integrations with different DeFi protocols on the BNB Chain, to create an ecosystem that will help to support the operation and growth of lisUSD.
To diversify its collateral options and enhance the flexibility of its platform, Lista plans to integrate Ethereum-based Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs, which might allow users to use these tokens as collateral for borrowing lisUSD.
By providing more collateral options, Lista DAO plans to attract a broader user base and increase the utility of its platform overall.
The DAO will also focus on upgrading its smart contracts to improve scalability and functionality, including enhancements to the collateral addition module, liquidation module, and Automatic Market Operations (AMO) module to optimize performance and user experience.
The roadmap also highlights the exploration of cross-chain opportunities, starting with its expansion to the Ethereum network. This will expand the protocol’s reach and interoperability, allowing users from different blockchain ecosystems to participate in and benefit from Lista DAO’s offerings.
Q3 2024In the third quarter of 2024, Lista DAO plans to introduce BNB restaking and the respective Liquid Restaking Tokens (LRTs) into the ecosystem, an initiative designed to enhance the utility and engagement within the protocol, offering users new ways to stake and earn rewards.
The roadmap highlights the project’s strategic approach to building a versatile DeFi platform that can adapt to users’ evolving needs.
ConclusionLista DAO allows users to stake cryptocurrencies, including BNB and ETH, through traditional and liquid staking methods. Liquid staking offers the added benefit of retaining liquidity through derivative tokens like slisBNB, which can be used across DeFi platforms. Users can participate in liquidity pools on platforms such as PancakeSwap, Wombat Exchange, ThenaFi, Curve, and Uniswap to take part in yield farming. By providing liquidity, users can earn trading fees and additional LISTA token rewards, enhancing the ecosystem’s liquidity and user engagement.