The stablecoin sector has been stuck on a deadlock—achieving true decentralization makes it difficult to maintain price stability and capital efficiency, while prioritizing efficiency often requires compromising decentralization or security margins. MakerDAO's DAI relies on USDC collateral, which has been criticized as pseudo-decentralized; Liquity's LUSD, although more pure, requires a collateralization ratio of over 150%, forcing users to lock up a large amount of funds to borrow stablecoins.

Lista DAO's approach is different. They introduce LST (Liquid Staking Tokens) as collateral, with the core innovation being—users can use assets like slisBNB, wstETH, which generate yields themselves, as collateral to borrow lisUSD. In other words, your collateral continues to accrue yield while unlocking liquidity for other operations. This significantly improves capital efficiency, and users are not forced to give up staking rewards.

On the technical side, Lista sets a collateralization ratio of 150%, which isn't particularly aggressive, but they complement this with a dynamic risk model—weekly assessments of collateral in the innovation zone, with real-time adjustments to risk parameters. Plus, the veLISTA governance mechanism allows the community to vote on system parameter adjustments, providing more flexible risk control.

Data speaks volumes. By 2025, Lista's TVL on BNB Chain has surpassed $2 billion, making it the largest stablecoin protocol on that chain. Compared to algorithmic stablecoins like Ethena's USDe, lisUSD isn't purely algorithmic, but its over-collateralization model offers users a more tangible sense of security—you can clearly see the collateralization ratio and assess risks. This practical approach suggests that LSDFi might truly be the way to break the "impossible triangle" of stablecoins.