Understanding Hylo’s collateral pool composition and management
Liquid staking tokens (LSTs) are fungible tokens representing staked SOL delegated to one or more validators on the Solana network. LSTs are analogous to an “on-chain bond”, where users lend SOL to validators in order to receive “interest” generated from block rewards and MEV. The yield bearing aspect of LSTs makes them an ideal backing collateral for a stablecoin like hyUSD.
Hylo implements fund administration controls which can be utilized by protocol governance to change the makeup and composition of the collateral pool.
Understanding Hylo’s collateral pool composition and management
Liquid staking tokens (LSTs) are fungible tokens representing staked SOL delegated to one or more validators on the Solana network. LSTs are analogous to an “on-chain bond”, where users lend SOL to validators in order to receive “interest” generated from block rewards and MEV. The yield bearing aspect of LSTs makes them an ideal backing collateral for a stablecoin like hyUSD.
Hylo implements fund administration controls which can be utilized by protocol governance to change the makeup and composition of the collateral pool.