🔮Vision

Cluster's mission.

Inefficiencies and Solutions

Liquid (re)Staked tokens have been gaining a tremendous amount of traction attracting billions in TVL across multiple protocols.

It’s clear that this sector won’t just be another temporary narrative but, instead, it’s primed to become a fundamental pillar of DeFi's ecosystem and it’ll change the way users interact with DeFi's diverse consesus layers.

Despite all this we believe that this asset class still suffers from various inefficiencies which Cluster aims to address by focusing on user experience and capital efficiency.

Here are the main issues and Cluster's respective improvements:

Lack of Dedicated Cross-Chain LSD Money Markets

While there are many protocols that issue these assets, there seems to be a lack of a dedicated liquidity hub for lending, borrowing and bridging LSDs between non-EVM compatible blockchains.

Cluster will allow users to deposit assets on either of the supported chains(initially Ethereum/Solana/Hyperliquid) and take out loans on the other.

Example:

Deposit wstETH as collateral on Ethereum and borrow mSOL against it on Solana.

Fragmented Liquidity

Many protocols in this niche have their versions of LSDs (eETH, wstETH, jitoSOL, etc.), each with its dedicated ecosystem. This situation isn't ideal as it may cause users to miss out on better yield opportunities if they can't monitor APY fluctuations continuously.

Cluster aims to change this by supporting all major assets from this sector while also displaying real-time APYs from different protocols; allowing users to bridge, allocate, lend and borrow funds accordingly all from just one intuitive interface.

Low Returns

Lastly, one cannot overlook the relatively low APY typically associated with these protocols, which averages between 3-4% on ETH and 7-8% on SOL.

While this can be a steady income stream for many, especially affluent individuals, it doesn't provide enough incentive for many "regular" users to stake their ETH, SOL, HYPE for extended periods of time, which might end up exploring other opportunities.

Cluster aims to onboard this particular group of individuals by allowing them to leverage their exposure to LSDs.