Interpretation of LSDFi Protocol Agility: After two weeks of launch, the token skyrocketed 20 times
In the two weeks since its launch, Agility TVL has approached 500 million USD (462 million USD), and its governance token AGI price has risen from the initial issuance price of 0.04 USD to the current 0.96 USD, an increase of 2300%, with a circulating market value of 15.47 million USD.Source: Planet Daily
Last Thursday, Ethereum completed the Shanghai upgrade, opening up the staking withdrawal feature. Contrary to expectations, the anticipated selling pressure did not materialize, and market participation in ETH staking actually increased. According to data from token.unlocks, since the upgrade, the new staking volume on the Ethereum network has reached 468,000 ETH—before the upgrade, the average weekly new staking was only about 100,000 ETH.
If this trend continues, more LSD (Liquid Staking Derivative) protocols will emerge, driving the arrival of LSD Summer. At this time, the two core needs for new protocol LSD Holders are: first, the liquidity of LSD tokens; second, scenarios for the appreciation of LSD tokens—staking, lending, earning interest, etc. The birth of Agility Protocol is specifically to address these core issues.
Agility is a decentralized finance protocol based on Ethereum, with the vision of unlocking liquidity for LSD holders, exploring more LSD trading scenarios, and providing deep liquidity for other LSD-related protocols, aiming to become a pioneer and core contributor to LSDFi and LSD Summer.
Data shows that in the two weeks since its launch, Agility's TVL has approached $500 million ($462 million), and its governance token AGI price has risen from the initial issuance price of $0.04 to the current $0.96, an increase of 2300%, with a circulating market cap of $15.47 million.
(1) LSD Liquidity Distribution Platform + aUSD Trading Platform
Common LSDs in the market include: stETH and wstETH issued by Lido, rETH issued by Rocket Pool, frxETH and sfrxETH issued by Frax, and cbETH issued by Coinbase.
Agility also supports ETH staking and generates aETH; in addition, it accepts staking of three types of LSD: stETH, rETH, and frxETH, generating aLSD (astETH, arETH, and afrxETH). After obtaining aETH and aLSD, users can choose: (1) to hold aLSD directly and earn corresponding LSD staking rewards; (2) to use aLSD or aETH to participate in the LSD liquidity distribution system, providing liquidity to selected vaults and earning rewards; (3) to stake aLSD or aETH to mint aUSD for trading or hedging risks.
What is the LSD liquidity distribution system? This is a liquidity capture channel established by the Agility protocol for various LSD protocols, which can effectively help them improve initial liquidity. Each LSD strategy vault serves different protocols, for example: providing liquidity for the rETH-WETH trading pair on Aura… At this time, users holding arETH can deposit their aLSD assets into the vault to earn rewards, including three types: 100% yield generated from staking the LSD itself; 30% of the strategy vault's yield; and esAGI token rewards. The initial strategy vault is created by the protocol or partners, and the creation of new vaults will be decided by Agility DAO.
What is the esAGI token? The Agility protocol uses the esAGI token as a reward distributed to various vaults, which is generated by staking the governance token AGI and has voting rights. Users can vote to determine the amount of rewards each vault can receive during each period; more esAGI rewards will attract more LPs to provide liquidity for that vault.
Therefore, for those protocols that have liquidity needs for LSD or ETH, they can bribe esAGI token holders to vote for their vault—esAGI token holders can receive 70% of the selected strategy vault's yield and the bribe fee. (Note from Odaily Planet Daily: This gameplay actually draws on Curve's veCRV voting bribery.)
Another important design of Agility is the aUSD trading system. aUSD is an over-collateralized stablecoin that users can mint by collateralizing aLSD or aETH, and can redeem the corresponding assets by repaying all debts; the initial collateralization rate is set at 130%, and when the collateralization rate falls below 110%, the protocol will liquidate the user's position, with a liquidation fee of 1%.
After obtaining aUSD, users can trade or hedge, such as going long/short on ETH, GMX, GNS, Pendle, Gear, etc., going long/short on LSD yields, engaging in options trading, and participating in gambling games, etc. According to the plan, Agility will either build its own aUSD trading ecosystem or attract developers to participate in order to increase the application scenarios for aUSD.
In the official documentation, Agility describes itself as "both an LSD liquidity distribution platform and an aUSD trading platform." It should be noted that currently, both the LSD liquidity distribution system and the aUSD trading platform have not yet officially launched.
(2) Fair Launch of Token AGI
AGI is the token issued for the protocol, serving functions such as governance, rewards, and liquidity guidance, with a total supply of 1 billion, of which 500 million were destroyed in the proposal on April 15; among the remaining tokens, 88% are used for liquidity incentives, 10% go to the treasury, 1% is for initial liquidity, 1% is for marketing, and the team share is 0. The marketing expenses are deposited in the Agility Treasury address supported by Safe: 0x11c0b36a6d5DB7AD79e8E19Ad9734f74006023AB, mainly used for cooperation with CEX (including liquidity and market making) as well as smart contract design and vulnerability maintenance.
On April 7, AGI was officially launched for public sale on 1inch/airswap, with a sales volume of 3 million tokens at a unit price of $0.04; over the past 10 days, the price of AGI has risen from $0.04 to the current $0.96, an increase of 2300%, with a circulating market cap of $15.47 million.
On April 10, Agility initiated the "Fair Launch," distributing AGI tokens among participants in the Agility ecosystem, absorbing nearly $500 million in deposits within a week. Specifically, Agility opened five mining pools for liquidity mining, including four single-coin pools for ETH, stETH, rETH, frxETH, and an AGI-WETH LP pool, with the addition of an ankrETH pool later. Of course, the pool with the highest distribution rewards is still the AGI-WETH LP pool, which also has the highest yield—annualized at 3800%, while the yields of other pools are as follows:
According to the project roadmap, Agility plans to complete its construction in three phases: the first phase, Genesis Liquidity Farming—accumulating LSD and ETH liquidity; launching the aUSD module and incentivizing aUSD-USDC liquidity; the second phase, launching LSD strategy vaults, launching the aUSD trading ecosystem's Perp and Yield Exchange; launching the LSD liquidity distribution ecosystem; the third phase, perfecting the aUSD trading ecosystem, attracting external developers to build more trading scenarios, improving the LSD liquidity distribution ecosystem, and launching the Bribe feature.
