The total crypto market, currently valued at 1.615 trillion USD (8/01/2024), is poised for an upward trajectory, anticipated to align with TradFi. This expected progression is underpinned by the significant surge in TVL post the merge and the rapid advancements in technologies witnessed over the past few years. The once uncertain regulatory landscape has gradually been clarifying, prompting an increasing number of assets to transition onto blockchain networks due to the inherent benefits of transparency and immutability. As blockchain-based startups continue to rise and governments acknowledge the immense potential, the demand for validators is expected to exponentially increase, given the necessity for validating every on-chain activity. This surge in demand aligns with the concept of staking, consequently leading to an escalation in staking rewards.
Lido currently holds the position of the largest liquid staking protocol in terms of TVL and ETH deposits. As early adopters, they played a pioneering role in introducing Liquid Staking Tokens, leveraging their first-mover advantage in this domain. Their innovative staking mechanism, which is both user-friendly and robust, deserves recognition. However, Lido's substantial market share (31.4%) raises concerns among core developers, apprehensive that a 33.33% stake in the validator market could potentially impact Ethereum's decentralization and overall economic security. Additionally, their practice of pooling staked ETH blends funds without regard to their origins, a factor strongly disfavored by institutions.
In response to these concerns, Dexponent stands as a platform specifically tailored for institutions, uniquely designed to mitigate counterparty risks to the highest possible extent. It delivers a seamless and transparent liquid staking experience, complemented by an array of additional features. The platform aims to address the aforementioned concerns and empower institutions to fully capitalize on the expansion of this landscape.