Low liquidity for LSD token pairs

Liquidity Staking Derivative (LSD) is a relatively new concept in the world of DeFi that is quickly gaining popularity among investors and traders. LSD is essentially a derivative token that is created by staking a liquidity pool token on a decentralized exchange (DEX) such as Uniswap. The token represents a share in the liquidity pool and can be traded on various platforms like any other token.

The growth of LSD has been impressive, with many investors and traders showing a keen interest in the token. The popularity of LSD can be attributed to its unique features, such as the ability to earn both trading fees and staking rewards from a single token. This makes LSD an attractive investment opportunity for those looking to earn passive income from their cryptocurrency holdings.

In recent times, several new projects have joined the LSD narrative, further boosting its growth and popularity. These projects have recognized the potential of LSD and are now incorporating it into their platforms to attract investors and traders.

However, as more and more projects join the LSD narrative, the diversification of liquidity becomes an issue. With an increasing number of projects staking their liquidity pool tokens to create LSD, the liquidity becomes spread thin, making it inefficient for traders and investors. This can lead to an increase in slippage and other issues that can negatively affect trading performance.

PLIT protocol is also capable of Increasing liquidity for LSD projects too.