📛Market Issues: Limitations of the Re-Staking Ecosystem

The re-staking ecosystem will inevitably expand to Layer 2 (L2) solutions on other public chains and even the DePin network, along with other PoS-based public chain networks. With the successful development of the ETH re-staking ecosystem, we anticipate broader adoption. However, at present, the market still offers relatively simple solutions centered around ETH, and these solutions are only partially compatible.

Re-staking services are limited to the ETH ecosystem

Although there are a large number of liquidity staking and re-staking projects in the market, their essence is to provide services around the ecological value of ETH and rely on ETH's POS income to operate. Putting aside the unreliability of some centralized operations, their development boundaries are limited by the market's existing funds, and it is not conducive to the ecosystem outside of ETH to obtain support from market funds.

The LSP protocol introduces the concept of node slicing, which will allow any public chain asset with POS data to entrust OmniVerify Chain for data verification and network security assurance, thereby realizing node re-staking functions and asset composability for all public chains.

Infrastructure that allows more public chain ecosystems to access

We believe that the re-staking narrative will inevitably expand beyond the Ethereum ecosystem. For example, if secure Bitcoin staking can be achieved, the economic value of the staking can then be used to secure other networks such as Bitcoin's second-layer network, modular blockchain components, and even other underlying chains. In blockchain networks that use the PoS mechanism, such as Solana and Aleo, the introduction of re-staking can increase the decentralization of their networks.

Currently, there are at least 30 mainstream public chain networks active in the market with frequent user participation. Some public chain users have a huge user base, but these users cannot transfer assets and rights between different public chains. This phenomenon will not only increase the siphoning pressure of the ETH network but also cause the market to lack liquidity and market prosperity and development.

The expectation of the LSP protocol is to realize a composable middleware that links all the PoS public chain ecosystems in the world and provide a simple and efficient one-stop equity exchange method for the Web3.0 ecosystem with these huge traffic and assets. We believe that through this implementation, the circulation efficiency of user's funds and assets will be greatly improved. At the same time, with the return of liquidity of the basic assets on the chain, the entire Web3.0 will enter a new era of prosperity.