Seamless’ first Integrated Liquidity Market will enable stakers on Lido to automatically use a borrowing strategy and compound positions on wstETH.
Seamless Protocol is launching an Integrated Liquidity Market (ILM) on Lido for wrapped staked Ethereum (wstETH), offering borrowing strategies for tokenholders seeking an alternative to traditional restaking.
According to Seamless, the ILM will enable stakers on Lido to automatically use a borrowing strategy and compound positions on wstETH, meaning that it automatically reinvests the returns from staked Ether (ETH) to potentially increase the users’ rewards.
The difference between this approach and restaking is in the level of sophistication of the investment strategy. Per the protocol, its ILM continuously manages the users’ funds, enabling low-collateral borrowing since the funds are maintained within the ILMs. Restaking, on the other hand, involves re-investing staked ETH to earn additional rewards without relying on advanced automated strategies.
