Overview and History

Lista DAO, an open-source liquidity protocol, is dedicated to enabling users to earn yields by leveraging collateralized crypto assets (such as BNB, ETH, stablecoins, and other cryptocurrencies) and supporting its decentralized stablecoin (also known as a “Destablecoin”) - lisUSD. Built upon the proven MakerDAO model, the protocol aims to establish a decentralized, unbiased, and collateral-backed stablecoin system.

Lista DAO is previously known as Helio Protocol. In August 2023, Binance Labs made a $10 million investment in Helio Protocol. Subsequently, Helio Protocol merged with Synclub, a staking infrastructure and liquidity provider on the BNB Chain, to form Lista DAO. This merger preserved Helio Protocol’s technological foundation and integrated Synclub’s expertise and infrastructure in liquid staking. The establishment of Lista DAO marked the birth of a new breed of open-source liquidity protocol, aiming to drive the growth of decentralized finance (DeFi) and promote its revolutionary stablecoin, lisUSD, to users and developers worldwide through its innovative dual-token model and multi-chain expansion plans.

Source: LISTA DAO Official Website

As of June 26, 2024, the total value locked on LISTA DAO exceeds $535 million, with collateral value over $309 million, Liquid staking over $226 million, and total borrowed amount reaching $39.527 million.

Source: LISTA DAO Official Website

Key Features of Lista DAO

1. Dual-Token Model: The protocol establishes two tokens: lisUSD and LISTA. lisUSD serves as a decentralized stablecoin backed by collateralized assets, while LISTA can be utilized for governance and other functionalities.

2. Multifunctional Support: Beyond the issuance and redemption of stablecoins, Lista DAO extends its capabilities to encompass instant conversions, asset collateralization, borrowing, and yield optimization, enhancing the comprehensiveness and efficiency of its ecosystem.

3. Ecosystem Expansion: Initially launched on the BNB Chain ecosystem, the protocol plans to expand its presence to multiple blockchains in the future, aiming to broaden its reach and user base.

4. Expertly Built and Developed: Lista DAO is built by experts in the DeFi and smart contract domains. It aims to establish its lisUSD Destablecoin as one of the most widely used protocols globally by leveraging Proof-of-Stake (PoS) rewards and yield-generating assets.

Tokenomics

lisUSD is a decentralized, unbiased, and collateral-backed stablecoin softly pegged to the US dollar. Users can borrow lisUSD by collateralizing assets on the Lista platform and storing them in the CeVault. CeVault acts as a secure repository for Lista’s collateral, ensuring the issuance, support, and stability of lisUSD.

lisUSD derives its liquidity from users depositing collateral assets into CeVault on Lista and borrowing lisUSD. Others can acquire lisUSD through brokers or exchanges, or by staking lisUSD in liquidity pools on external decentralized exchanges (DEXs). Once generated, purchased, or received, lisUSD can be utilized like any other cryptocurrency: for payments for goods and services, or for sending to others.

Lista DAO’s native cryptocurrency token is LISTA, serving as the medium of exchange between participants within the Lista ecosystem. The introduction of LISTA aims to provide a convenient and secure mode of payment and settlement for participants within Lista DAO without the involvement of any centralized third party. It is important to note that LISTA is not intended to be used by the general public as a medium of exchange for goods or services, nor is it designed for payments beyond those offered by the issuer.

The LISTA token incentivizes active participation in the development and decision-making processes of the Lista DAO ecosystem by fostering decentralized community governance and economic incentives. LISTA holders can vote on revenue allocation and protocol parameter adjustments. These votes are conducted entirely based on Lista DAO’s internal self-governance principles, free from intermediary influence.

The table below details the distribution of LISTA tokens:

lisUSD Price Stability Mechanism

Lista maintains lisUSD’s value at 1 USD relative to the US dollar under the following conditions:

When lisUSD > $1, the supply of lisUSD needs to increase:

• Due to the premium on lisUSD, borrowers are incentivized to borrow more lisUSD to sell for other assets and gain arbitrage opportunities.
• To reduce the demand for lisUSD, Lista will lower the borrowing interest rates for lisUSD, thereby decreasing the rewards generated by lisUSD.

When lisUSD < $1, the supply of lisUSD needs to decrease:

• Due to the discount on lisUSD, borrowers are incentivized to buy lisUSD from the market to repay their debts.
• To reduce the demand for lisUSD borrowing, Lista will increase the borrowing interest rates for lisUSD.

While LISTA strives to maintain price stability, lisUSD may not always perfectly peg to the USD and may slightly deviate under extreme market conditions.

LISTA Core Operating Mechanism

LISTA is composed of 3 main modules:

• Collateralized Borrowing
• Liquid Staking
• Rewards Module

Collateralized Borrowing

Collateralized borrowing involves several steps: providing collateral, borrowing lisUSD, repaying lisUSD, withdrawing collateral, and liquidating collateral assets.

To engage in borrowing, visit the borrowing page on the LISTA website and click “Connect Wallet.” By providing BNB or other collateral (such as ETH), you can borrow lisUSD, and then use the borrowed lisUSD for farming on other DEXs. Finally, you repay the lisUSD and withdraw your collateral.

Source: LISTA DAO Official Website

For example, the minimum deposit amount required is 0.5021 BNB, the minimum withdrawal amount is 0.5 BNB, the withdrawal time ranges from 7 to 15 days, and the minimum borrowing amount is 50 lisUSD. Loans cannot fall below 50 lisUSD, so users can choose to repay until the remaining balance is 50 lisUSD or repay the full amount.

Liquid Staking

Liquid staking is a core product of Lista DAO. It allows users to stake crypto assets (such as BNB) and receive corresponding liquidity certificates (like slisBNB). These certificates can be used for lending and providing liquidity on the Lista DAO platform and other DeFi platforms while still earning rewards from the original staked assets. Users can also use slisBNB as collateral to borrow the decentralized stablecoin lisUSD, currently at a 0% borrowing interest rate.

Source: LISTA DAO Official Website

Rewards Module

The LISTA rewards module consists of the following three parts:

• Borrowing Rewards: Users who borrow lisUSD are rewarded with LISTA tokens. These rewards are dynamically calculated as the product of the reward rate and the user’s total debt in lisUSD. The reward rate is a fixed amount set by Lista.
• Auction Initiation Rewards: Anyone who triggers a CDP (Collateralized Debt Position) liquidation event, initiating a Dutch auction, will receive a fixed fee (tip) and a percentage fee (chips) for starting the process. The tip and chips are paid from Lista’s reserves.
• Auction Restart Rewards: Anyone who restarts a Dutch auction as part of the liquidation process will receive a fixed fee (tip) and a percentage fee (chips). An EOA (Externally Owned Account) can restart the auction when the auction time limit is reached, or the price drops to a certain threshold. Lista’s governance sets these thresholds. The tip and chips are paid from Lista’s reserves.

Recent LISTA Token Price Movements and Outlook

Recently, the price of Lista DAO’s token, LISTA, has experienced significant fluctuations. In June 2024, LISTA tokens were listed on major exchanges such as Binance, KuCoin, and Bitget. This move boosted the token’s market value and trading volume. Due to these new listings, LISTA’s price surged significantly. However, in recent trading days, LISTA’s price corrected, retreating by as much as 8.71% from its peak to $0.70054. Recent market uncertainties may have prompted some investors to take profits, leading to the price adjustment.

Source: Coingecko

Looking ahead, as a decentralized stablecoin lending protocol, Lista DAO’s innovations and developments will continue to attract more users and investors. If the project can achieve its goals as outlined in its roadmap, such as transitioning to the Liquity codebase in the second quarter of 2024, it will positively impact the token price. Additionally, the community’s activity and the development of the ecosystem will play a crucial role in the long-term price trend of LISTA. More partnerships and application scenarios will enhance the token’s utility and demand.

Conclusion

In summary, users can earn rewards on Lista through various methods. They can stake their BNB as slisBNB, earning staking rewards from BNB. Additionally, they can provide liquidity for slisBNB and lisUSD in various liquidity pools on platforms like PancakeSwap, Wombat Exchange, ThenaFi, Curve, and Uniswap, further earning trading and LP fees.