Dinero began as Redacted, a project that initially emerged during the DeFi “Curve Wars” in 2021 and 2022. The Curve Wars were a period marked by fierce competition among protocols to gain governance power and control liquidity on Curve, a decentralized exchange focused on stablecoin trading. Redacted’s original purpose was to acquire voting power on Curve to direct liquidity flows, ultimately benefiting projects associated with its ecosystem.
Over time, the team behind Redacted saw the limitations of solely focusing on governance and recognized an opportunity to expand their ambitions. This shift led to a rebranding as Dinero, reflecting a broader vision for what the protocol could offer in the DeFi space beyond the narrow scope of governance wars.
At that time, there really wasn’t a singular protocol that offered synergies between product offerings - higher yields, a decentralized medium of exchange, and a permissionless transaction relayer to cater to users at every part of the stack. And there still isn’t. DeFi might be interconnected, but if you take a look at some of the largest protocols currently in the space, most teams prefer to stick to one vertical and iterate from there.
The team behind Dinero began to work towards a new type of vision in late 2023, deciding that this was the most ambitious and potentially rewarding opportunity available to them, making the choice to essentially go all-in on expanding their product suite around a central liquid staking token, pxETH.
Dinero has evolved with a new approach, positioning itself as a high-end DeFi protocol aimed at more than just standard yield generation. It’s pivoted from targeting only individual DeFi users toward a business-to-business (B2B) and institutional focus, creating what can be described as “white glove” services within decentralized finance.
This shift has allowed Dinero to rethink its product offerings and aim for solutions that cater to larger entities and more sophisticated users, who might be seeking stability, reliability, and sustainable returns in the highly volatile crypto market. By broadening its scope, Dinero is aligning itself to be more than just a protocol for DeFi enthusiasts, targeting serious institutional players as well.
Dinero’s redefined vision is centered around an idea of scalability and creating products that not only grow independently but also contribute to the growth of the Dinero ecosystem as a whole, without compromising on the needs of one product over another. To achieve this, Dinero offers a suite of products specifically designed to address some of the critical needs in DeFi, such as liquidity management, sustainable yield generation, and asset efficiency across multiple domains.
Unlike traditional protocols that rely heavily on liquidity mining or unsustainable incentives to attract users, Dinero’s strategy revolves around creating products that can drive organic growth. This approach aims to make Dinero’s offerings appealing in both bull and bear markets, giving it a more resilient business model.
One of Dinero’s most innovative product categories lies in Liquid Staking Tokens (LSTs).
LSTs are digital assets that represent staked assets while maintaining their liquidity, meaning holders can still trade or use these tokens within DeFi ecosystems without losing the staking rewards. In simpler terms, LSTs allow users to keep earning staking rewards on their assets while using them for other purposes.
However, Dinero's pxETH stands out as a flagship product and offers a different view towards adoption than other LSTs do.
As an Ethereum-based LST, pxETH allows users to participate in Ethereum’s staking economy while still having liquidity within the broader DeFi ecosystem. Given Ethereum’s role as a foundational layer for DeFi, having an accessible, liquid staking solution that offers reliable returns is crucial for institutional investors, dApps, and individual users alike.
pxETH seeks to offer this liquidity while remaining competitive with established liquid staking providers such as Lido and Rocket Pool, which have dominated the market by providing large-scale, decentralized staking solutions.
Above all, pxETH is the yield baseplate underpinning the entirety of the Dinero protocol. When users navigate to the app, they’re presented with the option to opt into the system - all of this begins with pxETH.
Dinero aims to distinguish itself from other LST providers by creating what they define as “branded” LSTs tailored for specific use cases and designed to meet the needs of a diverse range of users, all leveraging pxETH and its architecture. This strategic focus aligns with the protocol’s mission to be an all-encompassing DeFi service that offers more than just a straightforward staking option.
With branded LSTs, users can deposit their ETH on an L2, mint apxETH, route the assets through LayerZero, and finally return users a branded LST on that chain in return. The Dinero protocol can facilitate greater cross-chain liquidity, expand its brand, and further its vision of offering diverse LST-based products for a wider user base.
The creation of pxETH and branded LSTs represents a deliberate move by Dinero to capture a share of the growing liquid staking market. By catering to different audiences (across various blockchains), the Dinero ecosystem can grow and let users make a decision on how their assets gain yield.
As Ethereum increasingly solidifies its position as a form of programmable money, demand for flexible staking solutions is expected to rise. Dinero’s branded LSTs - which leverage the unique architecture of pxETH - aim to offer distinct advantages tailored to specific user needs, making them an attractive alternative to existing solutions. The decision to launch branded LSTs on top of pxETH was quite simple - their design makes it easy to build ancillary products regardless of underlying chain. At their core, these branded LSTs are essentially wrappers for apxETH, which receive the bulk of staking rewards.
Dinero hopes to position its existing and future branded LSTs as a preferred choice, especially for users who value a white glove service experience and long-term sustainability over short-term incentives. On top of being innovative in their approach, the data - which will be explored in a later section - suggests that Dinero’s product suite consistently delivers higher staking yields than its competitors.
Dinero’s transition from Redacted to a full-fledged DeFi protocol targeting scalable products and institutional-grade solutions becomes clear. DeFi has experienced a tumultuous growing phase since its humble beginnings in summer of 2020. Through it all, the demand for LSTs like stETH has remained a constant - Dinero is working to continue the work done by its predecessors and innovate on these learnings.
Beyond pxETH and its branded LSTs, Dinero has another vertical within the product suite that has yet to be tested at scale. We’ve seen larger institutions buy into the crypto ecosystem through ETFs, and occasionally see collaborations from larger DeFi protocols with giants of traditional finance, though these have remained few and far between. Instead of focusing solely on crypto users, Dinero wanted to build a product that caters specifically to institutions - enter ipxETH.
Short for institutional pxETH, ipxETH is Dinero’s liquid staking solution that abstracts away the complexities of DeFi and simplifies Dinero under a permissioned ecosystem. One of the key distinctions to make between pxETH and ipxETH is that while users are able to take pxETH and use it across DeFi, ipxETH is a pure play on offering institutions ETH staking yield without the hassle. These are two distinct audiences, as it’s unlikely most ETH stakers would want to take their assets and create additional risk through leverage or LP positions - but for many other crypto power users, this may be the entire appeal of a product like pxETH.
While most crypto users don’t fall into the potential target market for a product like ipxETH, that doesn’t mean the protocol can’t cater to both sides simultaneously. Where some may feel comfortable with pxETH, others, like institutions and their AUMs, are more of a better fit for ipxETH. Dinero’s history has been one of constant change, and this recent shift towards a heightened focus on branded LSTs, pxETH adoption, and now the introduction of ipxETH is no different from their past. The Curve Wars might be over but the team’s desire to innovate is far from it.
This emphasis on pxETH and apxETH is not just about entering the staking market, but about redefining it by offering tailored solutions that meet the complex needs of modern DeFi users. Dinero has worked to create a suite of products that can scale simultaneously, while managing to target these different user groups. With the introduction of a powerful two-token model in pxETH and apxETH, Dinero created a trojan horse for product innovation in DeFi: from these come branded LSTs and ipxETH, products built leveraging the Dinero stack.
With the groundwork laid, the next section will delve deeper into the mechanics of liquid staking, Dinero’s unique approach with ipxETH, and how it seeks to differentiate itself within a competitive landscape while still innovating on net-new products and features.
How does Dinero function relative to other LST providers?
LSTs are an innovative solution designed to increase the flexibility of staked assets, allowing users to earn staking rewards while still using their tokens within the broader DeFi ecosystem. Essentially, LSTs represent staked assets in a liquid form, so users don’t have to choose between staking their assets for rewards or retaining liquidity to participate in other DeFi protocols.
Dinero positions itself as a unique player among well-established protocols like Lido, Rocket Pool, and Frax. Each of these protocols offers distinctive staking approaches, creating a varied landscape in which Dinero aims to compete and coexist.
Lido is one of the leading platforms in the liquid staking space, known for its simplicity and large market share. Through Lido, users can stake their assets on multiple blockchains, receiving a liquid derivative like stETH for Ethereum staking. This approach allows users to earn staking rewards while retaining the flexibility to use stETH in various DeFi applications.
Lido’s dominance is largely due to its accessibility and the ease with which users can engage in liquid staking. By centralizing the staking process but distributing control among a set of operators, Lido maintains a high level of security and liquidity while also positioning itself as a go-to platform for users seeking a straightforward staking solution. This broad compatibility with DeFi protocols has helped Lido become the largest LST provider on Ethereum, establishing its reputation as a dependable and user-friendly staking solution.
Rocket Pool takes a more decentralized approach to staking, catering to users who prioritize decentralization and want a role in network security. Unlike Lido, Rocket Pool enables users to set up their own nodes and participate as node operators. By decentralizing the staking process, Rocket Pool enhances the security and resilience of the Ethereum network while offering rewards to individual node operators. Additionally, Rocket Pool’s model provides more flexibility to users by allowing them to contribute smaller amounts of ETH, which are pooled together to meet Ethereum’s staking requirements. For users with a long-term commitment to decentralization and self-sovereignty, Rocket Pool is an appealing option, combining the benefits of LSTs with a protocol that values user control and contribution to network security.
Frax offers another unique angle within the LST landscape by focusing on stablecoin integrations and yield optimization. Frax aims to bridge the gap between stable assets and liquid staking, with a focus on maximizing yield and maintaining price stability for its token holders.
While not as established in the LST space as Lido or Rocket Pool, Frax is positioned to capture a niche segment of the market that seeks both stability and returns from their staking activities. By using Frax’s platform, users can participate in staking while retaining access to assets that are designed to be less volatile, aligning with Frax’s broader goal of supporting a more stable DeFi ecosystem.
Dinero enters this landscape with pxETH and a two-token approach - pxETH and apxETH, aiming to bring a differentiated approach to liquid staking. Rather than simply offering a liquid staking option, Dinero seeks to capture different segments of users, including individuals, dApps, and institutions, by positioning pxETH as a multipurpose, versatile asset beyond something more basic like rETH or stETH. As it stands, leading LST providers don’t offer additional products wrapped around their main LSTs. Sure, users can take something like rETH or stETH and use it across DeFi, but these applications take a more hands-off approach. Dinero saw this and decided that there were only a few options that would lead to a successful rise in market capture in the near future:
- Remain a pure LST provider and let the market decide based on staking yield and risk tolerance
- Differentiate on the product suite and offer a truly unique experience, letting this drive growth back to the LST (in Dinero’s case, pxETH)
They took the ladder, and their strategy has worked so far, with Dinero’s total value locked (or TVL for short) sitting at over $115 million or 36,000 ETH - up from just 10,000 ETH at the start of 2024.
Here’s how it all works.
With other LSTs, the typical user flow involves sending ETH and receiving an LST in return - like stETH, rETH, and so on. With Dinero, users can opt to receive either pxETH or apxETH, depending on their individual preferences. For those that prefer capital efficiency and utility across DeFi, pxETH is the right LST as this lets them take their assets and earn boosted yields across other DeFi applications. For those who simply prefer increased staking rewards on their ETH, apxETH is the way to go, earning the majority of rewards while others choose to opt out of receiving these ETH rewards.
It’s worth noting that while the protocol and its varied product suite may come across as a pure business-to-business (b2b) play, Dinero leverages both ends of the spectrum and caters to users first and foremost. In fact, most of their work thus far has been on the business-to-consumer (b2c) front, offering pxETH and apxETH with a user-centric approach.
For those that navigate to the Dinero app and find themselves presented with a few options on where to put their ETH, it’s easy for them to simply choose pxETH, in the same way it’s simple for other L1s or L2s to integrate with Dinero and leverage the branded LST approach.
As highlighted earlier, Dinero’s team saw an opportunity to really innovate across different levels of DeFi, all under the hood of one application and a consistent user experience.
Dinero’s focus on branded LSTs is an attempt to cater to specific demands and provide unique functionalities within each staking product. By doing so, Dinero aims to make pxETH not only a tool for staking but also a building block for more complex DeFi applications, potentially offering additional yield or benefits through its integration within the Dinero ecosystem.
Offering branded LSTs lets Dinero unlock more opportunities for native yield on separate L2s. In the scenario where Dinero partners with leading L2s, users are then able to hold an LST like apxETH and earn yield instead of passively holding ETH without benefiting from it. L2s would be able to incentivize users with this, whereas in the past, users were left with less opportunities on L2s than they were on mainnet. With branded LSTs expanding to other L1s, Dinero is able to gain an advantage or jumpstart with new ecosystems - with the more recent announcement of branded LSTs on Sei, Dinero is working on expanding their reach and unlocking liquidity cross-chain.
To give a more concrete example, Dinero recently entered into partnerships with Arbitrum - a leading Ethereum L2 - with the launch of orbETH, an Arbitrum-native ETH liquid staking solution and zkSync more recently, with their zkETH product.
A defining aspect of Dinero’s approach is its emphasis on creating an ecosystem on top of pxETH rather than just a standalone staking token with singular utility. There is a lot to be said about the recognized utility and clear demand for LSTs (just examine Lido’s TVL since launch) but there isn’t nearly enough discussion about expanding opportunities for LST holders - Dinero is fixing this. If there’s a collective belief that ETH’s growth as a widely used digital currency is set to continue over the coming years and decades, then there should exist sufficient infrastructure for all types of users, developers, or teams that wish to build around it.
The bold vision of Dinero isn’t limited to scaling TVL and sitting idly. Part of their strategy to bolster pxETH growth includes partnerships with other DeFi protocols and blockchains, allowing pxETH to be used in yield optimization strategies, native-yield flywheels, collateral in lending platforms, or as a liquidity source in decentralized exchanges - Dinero simply provides the tools to make this a reality.
By embedding pxETH into various aspects of the cross-chain DeFi ecosystem, Dinero positions itself to offer a liquid staking product that provides more than just passive rewards, targeting users who wish to utilize their staked assets actively across different DeFi channels. This is of course possible with assets like stETH or rETH, though Dinero’s strategy of unbundling the utility of these LSTs into two distinct user strategy sets has yet to be tested.
We’ve seen many institutions recently pivoting from staunch, anti-crypto stances to overwhelming support, whether it’s the numerous ETFs and billions of inflows, traditional financial companies like PayPal launching stablecoins, RWA (real-world asset) product offerings and significant US treasury demand fueled by crypto, or general policy changes that are pro-crypto. Dinero wants to become this white glove service for institutions that may want crypto exposure but have been previously unwilling to deal with the complexities.
While protocols like Lido, Rocket Pool, and Frax have built impressive user bases, Dinero aims to carve out its niche by enhancing the usability and adaptability of its LST offerings. LSTs are popular due to the collective belief in Ethereum’s network, ecosystem, and value as a token across every subsector of its ecosystem. LSTs are used because the majority of crypto wants to earn a passive return on an asset they’d otherwise be holding regardless, making it
The intention behind pxETH is not only to outperform the staking returns provided by competitors but to elevate the user experience by integrating more functionalities and compatibility within the broader DeFi landscape. This focus on utility shows Dinero’s ambition to not just join the ranks of LST providers but to redefine the possibilities of what LSTs can offer, with an eye toward making staking accessible for all institutions. In the future, it’s likely more teams adopt a model similar to Dinero’s and increase innovation around these more bespoke LST offerings.
If we take a look at Dinero’s historical APY offerings on apxETH, we see a very healthy range despite some volatility:
Dinero wants to capture a broad spectrum of demand and provide value in an evolving DeFi market, primarily through its two-pronged approach of collaborating with other L1s and L2s through Branded LSTs and their institutional focus via ipxETH. As far as other LSTs go, we can navigate to DeFillama and see the top yieldings LSTs relative to apxETH:
Unlike the LST platforms listed, Dinero’s approach focuses on providing customized staking solutions that meet the needs of various users.For example, pxETH, isn’t simply a token representing staked ETH; it’s a versatile asset designed to integrate seamlessly into Dinero’s wider ecosystem, which offers staking rewards, liquidity options, and access to other services.
The staking yield is obviously a large part of the appeal, but one of DeFi’s innate advantages over traditional financial systems is its ability to offer composability between financial platforms. For teams looking to improve metrics like user retention, enhanced user workflows, or increase the amount their users can do on-chain, integrating and working with Dinero through pxETH is an attractive decision.
This all-in-one approach allows Dinero to address both liquidity and utility, giving users a staking solution that’s compatible with other DeFi platforms while also providing unique benefits within the Dinero network.
A major feature that sets Dinero apart is its focus on adaptability for a wide range of institutional clients, alongside its appeal to retail DeFi users. By designing ipxETH with a high degree of interoperability, Dinero has created an asset that’s flexible enough to serve different segments of the market. For instance, while retail users might use pxETH for staking and accessing liquidity in DeFi pools, institutional investors can leverage ipxETH as a stable, yield-bearing asset that integrates seamlessly with their broader financial operations. This adaptability is essential in attracting a wide user base, which Dinero views as crucial to both the growth of pxETH and the expansion of its own ecosystem.
This approach is reflected in Dinero’s partnerships and integrations within the DeFi space, which ensure that pxETH remains a liquid and useful asset across a wide range of DeFi protocols. By embedding pxETH within a network of yield optimization platforms, lending protocols, and decentralized exchanges, Dinero is creating a token that functions as more than just a staking derivative; it becomes a key asset for yield generation and liquidity provision.
This focus on sustainable, long-term growth reflects Dinero’s ambitions to become a central player in the LST space, not only by capturing market share but by expanding the scope of what LSTs can achieve. The protocol’s efforts to build a diverse, integrated ecosystem around pxETH signal a commitment to value creation, where holders of the token can enjoy a range of benefits beyond simple staking rewards. This is a distinct contrast to some LST providers that may prioritize rapid growth over long-term utility. By keeping stability at the forefront, Dinero is setting itself up to be a reliable choice for users who want the security of staking with the added flexibility of maintaining liquidity in their assets, with the ability to choose between the two.
Additionally, Dinero’s roadmap indicates a continuous commitment to innovation within the LST market, with plans to expand its branded LST offerings and add additional integrations with other DeFi protocols. The success of ipxETH serves as a proof of concept for Dinero’s model, showing that branded, tailored LSTs can attract a loyal user base and create a thriving ecosystem. Future product developments will likely build upon the same foundation of utility, adaptability, and ecosystem compatibility, potentially opening the door for Dinero to offer branded staking tokens on other blockchain networks.
As Dinero continues to expand its suite of products and build new partnerships, it is well-positioned to capture a niche within the LST space by delivering a differentiated, high-quality staking experience that serves both individual and institutional users. In the next section, we’ll dive into the details of how Dinero’s LST model, particularly through ipxETH, aims to stand out in an increasingly competitive market.
Potential futures for Dinero
The work Dinero has done with LSTs has also catalyzed a wave of innovation around Ethereum staking, particularly as it relates to maximizing both yield and liquidity.
Dinero is inviting the wider DeFi ecosystem to rethink the potential of LSTs and Ethereum itself. By focusing on a product that combines staking rewards with liquidity, Dinero has opened doors to greater experimentation with ETH, encouraging developers and protocols to consider how staked assets can play a role in more complex financial systems. Instead of limiting itself to “just” an application that offers higher yields on staked ETH, Dinero can market to these evolving audiences and prove itself on multiple levels.
As other protocols look to Dinero’s example, we may see a more interconnected DeFi ecosystem, where ETH and other LSTs become assets that contribute to liquidity pools, governance, and even collateralized stablecoin issuance, creating an ecosystem that’s rich in utility and composability.
These structures allow projects to incentivize voting behavior in ways that align with their growth goals while empowering users to make choices that benefit both themselves and the protocols they support. Moving forward, Dinero’s governance model could expand to incorporate more granular forms of user engagement, such as tiered voting rights for long-term stakers or even delegated governance options, where experienced community members act as representatives for others. This would democratize governance, making it possible for users of all levels to engage meaningfully.
Another innovative direction for Dinero could involve experimenting with cross-chain governance models as it expands its product suite across multiple chains and Layer 2 solutions. By setting up a governance framework that spans multiple networks, Dinero would be able to extend its influence across different ecosystems, allowing for a more cohesive protocol strategy that adapts to each chain’s unique needs and opportunities. For example, governance could take into account the specific demands and user preferences of a Layer 2 environment while still maintaining alignment with Dinero’s overarching goals. This would set a precedent in DeFi governance, showing that decentralized protocols can scale governance across chains while preserving a unified, user-driven mission.
Dinero’s work in governance could spark a broader industry shift toward incentivized governance models that reward active and informed participation. By rewarding users who engage meaningfully in governance activities, Dinero is building a loyal user base that contributes to the protocol’s growth and resilience. This model, if adopted by other protocols, could lead to a DeFi landscape where governance is not only about decision-making but also about fostering protocol loyalty and long-term engagement. This shift could attract a new type of DeFi participant: one who is invested not only financially but also strategically, creating a more stable and community-oriented environment for DeFi growth.
Dinero’s potential revamped governance approach and innovative LST offerings mark it as a trailblazer within DeFi. By driving experimentation with ETH utility and advocating for user-driven protocol control, Dinero is inspiring the development of governance frameworks that value flexibility, sustainability, and engagement. As it continues to expand and refine its governance model, Dinero has the potential to redefine what effective DeFi governance looks like, promoting a future where decentralized protocols are adaptable, user-centric, and positioned for sustainable growth across chains and user bases.
What does Dinero do better and how does this evolve?
Looking forward, Dinero’s roadmap suggests an ambitious evolution that could significantly impact both the DeFi and institutional finance landscapes. As the protocol continues to roll out new products, it’s moving toward becoming a key infrastructure provider across DeFi, bridging that gap between traditional finance and decentralized ecosystems. One of the key aspects of this trajectory involves Dinero’s branded LSTs, which are set to grow beyond Ethereum, allowing other Layer 1 and Layer 2 networks to launch their own staking products on Dinero’s infrastructure. By becoming a foundational staking infrastructure, Dinero could emerge as the backbone for decentralized finance on multiple chains, supporting assets and protocols across the ecosystem with tailored staking options.
The introduction of pxUSD adds another layer to Dinero’s ecosystem, offering a decentralized, collateral-backed stablecoin that has the potential to become a widely used medium of exchange. This stablecoin is strategically positioned to complement pxETH by giving users access to a stable, liquid asset that can be used in tandem with their staking activities. With pxUSD, Dinero could expand its presence in DeFi markets, offering a stablecoin solution that integrates seamlessly with its existing products and opens up additional avenues for yield generation.
As more DeFi applications and dApps incorporate pxUSD, Dinero’s influence could extend to areas like payments, lending, and liquidity provision on Ethereum, creating an interconnected web of products that drive value back into the protocol.
We’ve seen significant growth in the stablecoin market map recently, with PayPal and Ethena leading the way in terms of innovation. While the usual culprits (USDT or USDC) still control the vast majority of market share, there’s a lot to be said about stablecoins remaining as crypto’s “killer app.” Recently, Stripe made an acquisition of Bridge for $1 billion, claiming “stablecoins are superconductors for financial activities.” Stablecoins aren’t just digital dollars, but a superior version of the traditional financial rails that are slow, inaccessible during crucial moments, and significantly more expensive than the alternatives of crypto.
With a stablecoin like pxUSD, Dinero would enter a space where they control products across some of crypto’s most fundamental pillars: LSTs, stablecoins, and with the introduction of their third phase, an RPC layer for all types of users.
The next phase of Dinero’s development includes a permissionless RPC (remote procedure call) layer designed to open up public access to its network, reducing reliance on centralized infrastructure for data access and transaction processing. This RPC layer represents an essential step toward decentralization, as it would allow developers, users, and dApps to interact with Dinero’s ecosystem without relying on centralized, potentially costly services.
By enabling permissionless access, Dinero would be aligning with its ethos of user empowerment and decentralization, providing critical infrastructure that supports a truly decentralized financial system. In this sense, Dinero’s RPC layer could pave the way for a more open, resilient network that benefits the wider Ethereum ecosystem and beyond.
Dinero’s phased expansion reflects a clear focus on long-term, iterative growth, particularly by fostering an ecosystem of products that build upon one another. The liquidity of pxETH will likely support pxUSD adoption, as pxUSD would benefit from deep liquidity pools created by pxETH and ipxETH stakers.
As these products interlock, Dinero could achieve a network effect where each new launch enhances the value and utility of previous offerings. This interconnectedness is not only beneficial for Dinero’s growth but also creates a self-sustaining ecosystem where assets are highly integrated, allowing for more efficient capital use and yield generation across its network.
With the expected growth in demand for decentralized finance solutions from institutional investors, Dinero’s institutional offering, ipxETH, represents a significant step forward. As more accredited investors look to diversify into crypto, ipxETH provides a compliant and simplified gateway into Ethereum staking, which could attract a wave of new capital into the protocol. The increasing adoption of ipxETH would likely reinforce Dinero’s brand reputation and bolster its capital reserves, giving it the means to expand its suite of DeFi services. By catering to both individual and institutional needs, Dinero could become a major player in facilitating the next phase of DeFi’s growth, where traditional finance and DeFi begin to merge.
Over time, Dinero’s growth trajectory could redefine how staking is perceived and utilized within decentralized finance. Its approach to creating a scalable, yield-generating ecosystem—spanning liquid staking, stablecoins, and decentralized infrastructure—reflects a commitment to building a versatile financial platform.
As the protocol matures, it could serve as a model for how DeFi protocols achieve sustainability and scalability, reducing their reliance on short-term incentives in favor of long-term, value-driven products. This approach aligns Dinero with some of the most critical trends in DeFi today, where protocols are increasingly focused on resilience, user trust, and utility rather than speculative growth.
If successful, Dinero’s phased approach could lead to a self-sustaining ecosystem with an interconnected suite of assets and tools that attract users across different segments. From retail DeFi enthusiasts to institutional investors, Dinero’s offerings could appeal broadly, driven by an ecosystem that balances the need for liquidity, yield, and decentralization. By setting up infrastructure and products that can scale with DeFi’s growth, Dinero positions itself to be a key pillar in the sector’s evolution, playing a role in everything from liquidity provision to decentralized governance and cross-chain integrations.
In the coming years, Dinero’s ability to execute on this roadmap will be crucial in determining its impact within DeFi. If the protocol achieves its vision, Dinero’s model could offer a blueprint for sustainable DeFi growth, one that attracts a diverse user base and creates a thriving, long-lasting ecosystem of financial products tailored to the evolving demands of DeFi and crypto’s continued mass adoption more broadly.
Disclaimer: This report was commissioned by Dinero. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Dinero began as Redacted, a project that initially emerged during the DeFi “Curve Wars” in 2021 and 2022. The Curve Wars were a period marked by fierce competition among protocols to gain governance power and control liquidity on Curve, a decentralized exchange focused on stablecoin trading. Redacted’s original purpose was to acquire voting power on Curve to direct liquidity flows, ultimately benefiting projects associated with its ecosystem.
Over time, the team behind Redacted saw the limitations of solely focusing on governance and recognized an opportunity to expand their ambitions. This shift led to a rebranding as Dinero, reflecting a broader vision for what the protocol could offer in the DeFi space beyond the narrow scope of governance wars.
At that time, there really wasn’t a singular protocol that offered synergies between product offerings - higher yields, a decentralized medium of exchange, and a permissionless transaction relayer to cater to users at every part of the stack. And there still isn’t. DeFi might be interconnected, but if you take a look at some of the largest protocols currently in the space, most teams prefer to stick to one vertical and iterate from there.
The team behind Dinero began to work towards a new type of vision in late 2023, deciding that this was the most ambitious and potentially rewarding opportunity available to them, making the choice to essentially go all-in on expanding their product suite around a central liquid staking token, pxETH.
Dinero has evolved with a new approach, positioning itself as a high-end DeFi protocol aimed at more than just standard yield generation. It’s pivoted from targeting only individual DeFi users toward a business-to-business (B2B) and institutional focus, creating what can be described as “white glove” services within decentralized finance.
This shift has allowed Dinero to rethink its product offerings and aim for solutions that cater to larger entities and more sophisticated users, who might be seeking stability, reliability, and sustainable returns in the highly volatile crypto market. By broadening its scope, Dinero is aligning itself to be more than just a protocol for DeFi enthusiasts, targeting serious institutional players as well.
Dinero’s redefined vision is centered around an idea of scalability and creating products that not only grow independently but also contribute to the growth of the Dinero ecosystem as a whole, without compromising on the needs of one product over another. To achieve this, Dinero offers a suite of products specifically designed to address some of the critical needs in DeFi, such as liquidity management, sustainable yield generation, and asset efficiency across multiple domains.
Unlike traditional protocols that rely heavily on liquidity mining or unsustainable incentives to attract users, Dinero’s strategy revolves around creating products that can drive organic growth. This approach aims to make Dinero’s offerings appealing in both bull and bear markets, giving it a more resilient business model.
One of Dinero’s most innovative product categories lies in Liquid Staking Tokens (LSTs).
LSTs are digital assets that represent staked assets while maintaining their liquidity, meaning holders can still trade or use these tokens within DeFi ecosystems without losing the staking rewards. In simpler terms, LSTs allow users to keep earning staking rewards on their assets while using them for other purposes.
However, Dinero's pxETH stands out as a flagship product and offers a different view towards adoption than other LSTs do.
As an Ethereum-based LST, pxETH allows users to participate in Ethereum’s staking economy while still having liquidity within the broader DeFi ecosystem. Given Ethereum’s role as a foundational layer for DeFi, having an accessible, liquid staking solution that offers reliable returns is crucial for institutional investors, dApps, and individual users alike.
pxETH seeks to offer this liquidity while remaining competitive with established liquid staking providers such as Lido and Rocket Pool, which have dominated the market by providing large-scale, decentralized staking solutions.
Above all, pxETH is the yield baseplate underpinning the entirety of the Dinero protocol. When users navigate to the app, they’re presented with the option to opt into the system - all of this begins with pxETH.
Dinero aims to distinguish itself from other LST providers by creating what they define as “branded” LSTs tailored for specific use cases and designed to meet the needs of a diverse range of users, all leveraging pxETH and its architecture. This strategic focus aligns with the protocol’s mission to be an all-encompassing DeFi service that offers more than just a straightforward staking option.
With branded LSTs, users can deposit their ETH on an L2, mint apxETH, route the assets through LayerZero, and finally return users a branded LST on that chain in return. The Dinero protocol can facilitate greater cross-chain liquidity, expand its brand, and further its vision of offering diverse LST-based products for a wider user base.
The creation of pxETH and branded LSTs represents a deliberate move by Dinero to capture a share of the growing liquid staking market. By catering to different audiences (across various blockchains), the Dinero ecosystem can grow and let users make a decision on how their assets gain yield.
As Ethereum increasingly solidifies its position as a form of programmable money, demand for flexible staking solutions is expected to rise. Dinero’s branded LSTs - which leverage the unique architecture of pxETH - aim to offer distinct advantages tailored to specific user needs, making them an attractive alternative to existing solutions. The decision to launch branded LSTs on top of pxETH was quite simple - their design makes it easy to build ancillary products regardless of underlying chain. At their core, these branded LSTs are essentially wrappers for apxETH, which receive the bulk of staking rewards.
Dinero hopes to position its existing and future branded LSTs as a preferred choice, especially for users who value a white glove service experience and long-term sustainability over short-term incentives. On top of being innovative in their approach, the data - which will be explored in a later section - suggests that Dinero’s product suite consistently delivers higher staking yields than its competitors.
Dinero’s transition from Redacted to a full-fledged DeFi protocol targeting scalable products and institutional-grade solutions becomes clear. DeFi has experienced a tumultuous growing phase since its humble beginnings in summer of 2020. Through it all, the demand for LSTs like stETH has remained a constant - Dinero is working to continue the work done by its predecessors and innovate on these learnings.
Beyond pxETH and its branded LSTs, Dinero has another vertical within the product suite that has yet to be tested at scale. We’ve seen larger institutions buy into the crypto ecosystem through ETFs, and occasionally see collaborations from larger DeFi protocols with giants of traditional finance, though these have remained few and far between. Instead of focusing solely on crypto users, Dinero wanted to build a product that caters specifically to institutions - enter ipxETH.
Short for institutional pxETH, ipxETH is Dinero’s liquid staking solution that abstracts away the complexities of DeFi and simplifies Dinero under a permissioned ecosystem. One of the key distinctions to make between pxETH and ipxETH is that while users are able to take pxETH and use it across DeFi, ipxETH is a pure play on offering institutions ETH staking yield without the hassle. These are two distinct audiences, as it’s unlikely most ETH stakers would want to take their assets and create additional risk through leverage or LP positions - but for many other crypto power users, this may be the entire appeal of a product like pxETH.
While most crypto users don’t fall into the potential target market for a product like ipxETH, that doesn’t mean the protocol can’t cater to both sides simultaneously. Where some may feel comfortable with pxETH, others, like institutions and their AUMs, are more of a better fit for ipxETH. Dinero’s history has been one of constant change, and this recent shift towards a heightened focus on branded LSTs, pxETH adoption, and now the introduction of ipxETH is no different from their past. The Curve Wars might be over but the team’s desire to innovate is far from it.
This emphasis on pxETH and apxETH is not just about entering the staking market, but about redefining it by offering tailored solutions that meet the complex needs of modern DeFi users. Dinero has worked to create a suite of products that can scale simultaneously, while managing to target these different user groups. With the introduction of a powerful two-token model in pxETH and apxETH, Dinero created a trojan horse for product innovation in DeFi: from these come branded LSTs and ipxETH, products built leveraging the Dinero stack.
With the groundwork laid, the next section will delve deeper into the mechanics of liquid staking, Dinero’s unique approach with ipxETH, and how it seeks to differentiate itself within a competitive landscape while still innovating on net-new products and features.
How does Dinero function relative to other LST providers?
LSTs are an innovative solution designed to increase the flexibility of staked assets, allowing users to earn staking rewards while still using their tokens within the broader DeFi ecosystem. Essentially, LSTs represent staked assets in a liquid form, so users don’t have to choose between staking their assets for rewards or retaining liquidity to participate in other DeFi protocols.
Dinero positions itself as a unique player among well-established protocols like Lido, Rocket Pool, and Frax. Each of these protocols offers distinctive staking approaches, creating a varied landscape in which Dinero aims to compete and coexist.
Lido is one of the leading platforms in the liquid staking space, known for its simplicity and large market share. Through Lido, users can stake their assets on multiple blockchains, receiving a liquid derivative like stETH for Ethereum staking. This approach allows users to earn staking rewards while retaining the flexibility to use stETH in various DeFi applications.
Lido’s dominance is largely due to its accessibility and the ease with which users can engage in liquid staking. By centralizing the staking process but distributing control among a set of operators, Lido maintains a high level of security and liquidity while also positioning itself as a go-to platform for users seeking a straightforward staking solution. This broad compatibility with DeFi protocols has helped Lido become the largest LST provider on Ethereum, establishing its reputation as a dependable and user-friendly staking solution.
Rocket Pool takes a more decentralized approach to staking, catering to users who prioritize decentralization and want a role in network security. Unlike Lido, Rocket Pool enables users to set up their own nodes and participate as node operators. By decentralizing the staking process, Rocket Pool enhances the security and resilience of the Ethereum network while offering rewards to individual node operators. Additionally, Rocket Pool’s model provides more flexibility to users by allowing them to contribute smaller amounts of ETH, which are pooled together to meet Ethereum’s staking requirements. For users with a long-term commitment to decentralization and self-sovereignty, Rocket Pool is an appealing option, combining the benefits of LSTs with a protocol that values user control and contribution to network security.
Frax offers another unique angle within the LST landscape by focusing on stablecoin integrations and yield optimization. Frax aims to bridge the gap between stable assets and liquid staking, with a focus on maximizing yield and maintaining price stability for its token holders.
While not as established in the LST space as Lido or Rocket Pool, Frax is positioned to capture a niche segment of the market that seeks both stability and returns from their staking activities. By using Frax’s platform, users can participate in staking while retaining access to assets that are designed to be less volatile, aligning with Frax’s broader goal of supporting a more stable DeFi ecosystem.
Dinero enters this landscape with pxETH and a two-token approach - pxETH and apxETH, aiming to bring a differentiated approach to liquid staking. Rather than simply offering a liquid staking option, Dinero seeks to capture different segments of users, including individuals, dApps, and institutions, by positioning pxETH as a multipurpose, versatile asset beyond something more basic like rETH or stETH. As it stands, leading LST providers don’t offer additional products wrapped around their main LSTs. Sure, users can take something like rETH or stETH and use it across DeFi, but these applications take a more hands-off approach. Dinero saw this and decided that there were only a few options that would lead to a successful rise in market capture in the near future:
- Remain a pure LST provider and let the market decide based on staking yield and risk tolerance
- Differentiate on the product suite and offer a truly unique experience, letting this drive growth back to the LST (in Dinero’s case, pxETH)
They took the ladder, and their strategy has worked so far, with Dinero’s total value locked (or TVL for short) sitting at over $115 million or 36,000 ETH - up from just 10,000 ETH at the start of 2024.
Here’s how it all works.
With other LSTs, the typical user flow involves sending ETH and receiving an LST in return - like stETH, rETH, and so on. With Dinero, users can opt to receive either pxETH or apxETH, depending on their individual preferences. For those that prefer capital efficiency and utility across DeFi, pxETH is the right LST as this lets them take their assets and earn boosted yields across other DeFi applications. For those who simply prefer increased staking rewards on their ETH, apxETH is the way to go, earning the majority of rewards while others choose to opt out of receiving these ETH rewards.
It’s worth noting that while the protocol and its varied product suite may come across as a pure business-to-business (b2b) play, Dinero leverages both ends of the spectrum and caters to users first and foremost. In fact, most of their work thus far has been on the business-to-consumer (b2c) front, offering pxETH and apxETH with a user-centric approach.
For those that navigate to the Dinero app and find themselves presented with a few options on where to put their ETH, it’s easy for them to simply choose pxETH, in the same way it’s simple for other L1s or L2s to integrate with Dinero and leverage the branded LST approach.
As highlighted earlier, Dinero’s team saw an opportunity to really innovate across different levels of DeFi, all under the hood of one application and a consistent user experience.
Dinero’s focus on branded LSTs is an attempt to cater to specific demands and provide unique functionalities within each staking product. By doing so, Dinero aims to make pxETH not only a tool for staking but also a building block for more complex DeFi applications, potentially offering additional yield or benefits through its integration within the Dinero ecosystem.
Offering branded LSTs lets Dinero unlock more opportunities for native yield on separate L2s. In the scenario where Dinero partners with leading L2s, users are then able to hold an LST like apxETH and earn yield instead of passively holding ETH without benefiting from it. L2s would be able to incentivize users with this, whereas in the past, users were left with less opportunities on L2s than they were on mainnet. With branded LSTs expanding to other L1s, Dinero is able to gain an advantage or jumpstart with new ecosystems - with the more recent announcement of branded LSTs on Sei, Dinero is working on expanding their reach and unlocking liquidity cross-chain.
To give a more concrete example, Dinero recently entered into partnerships with Arbitrum - a leading Ethereum L2 - with the launch of orbETH, an Arbitrum-native ETH liquid staking solution and zkSync more recently, with their zkETH product.
A defining aspect of Dinero’s approach is its emphasis on creating an ecosystem on top of pxETH rather than just a standalone staking token with singular utility. There is a lot to be said about the recognized utility and clear demand for LSTs (just examine Lido’s TVL since launch) but there isn’t nearly enough discussion about expanding opportunities for LST holders - Dinero is fixing this. If there’s a collective belief that ETH’s growth as a widely used digital currency is set to continue over the coming years and decades, then there should exist sufficient infrastructure for all types of users, developers, or teams that wish to build around it.
The bold vision of Dinero isn’t limited to scaling TVL and sitting idly. Part of their strategy to bolster pxETH growth includes partnerships with other DeFi protocols and blockchains, allowing pxETH to be used in yield optimization strategies, native-yield flywheels, collateral in lending platforms, or as a liquidity source in decentralized exchanges - Dinero simply provides the tools to make this a reality.
By embedding pxETH into various aspects of the cross-chain DeFi ecosystem, Dinero positions itself to offer a liquid staking product that provides more than just passive rewards, targeting users who wish to utilize their staked assets actively across different DeFi channels. This is of course possible with assets like stETH or rETH, though Dinero’s strategy of unbundling the utility of these LSTs into two distinct user strategy sets has yet to be tested.
We’ve seen many institutions recently pivoting from staunch, anti-crypto stances to overwhelming support, whether it’s the numerous ETFs and billions of inflows, traditional financial companies like PayPal launching stablecoins, RWA (real-world asset) product offerings and significant US treasury demand fueled by crypto, or general policy changes that are pro-crypto. Dinero wants to become this white glove service for institutions that may want crypto exposure but have been previously unwilling to deal with the complexities.
While protocols like Lido, Rocket Pool, and Frax have built impressive user bases, Dinero aims to carve out its niche by enhancing the usability and adaptability of its LST offerings. LSTs are popular due to the collective belief in Ethereum’s network, ecosystem, and value as a token across every subsector of its ecosystem. LSTs are used because the majority of crypto wants to earn a passive return on an asset they’d otherwise be holding regardless, making it
The intention behind pxETH is not only to outperform the staking returns provided by competitors but to elevate the user experience by integrating more functionalities and compatibility within the broader DeFi landscape. This focus on utility shows Dinero’s ambition to not just join the ranks of LST providers but to redefine the possibilities of what LSTs can offer, with an eye toward making staking accessible for all institutions. In the future, it’s likely more teams adopt a model similar to Dinero’s and increase innovation around these more bespoke LST offerings.
If we take a look at Dinero’s historical APY offerings on apxETH, we see a very healthy range despite some volatility:
Dinero wants to capture a broad spectrum of demand and provide value in an evolving DeFi market, primarily through its two-pronged approach of collaborating with other L1s and L2s through Branded LSTs and their institutional focus via ipxETH. As far as other LSTs go, we can navigate to DeFillama and see the top yieldings LSTs relative to apxETH:
Unlike the LST platforms listed, Dinero’s approach focuses on providing customized staking solutions that meet the needs of various users.For example, pxETH, isn’t simply a token representing staked ETH; it’s a versatile asset designed to integrate seamlessly into Dinero’s wider ecosystem, which offers staking rewards, liquidity options, and access to other services.
The staking yield is obviously a large part of the appeal, but one of DeFi’s innate advantages over traditional financial systems is its ability to offer composability between financial platforms. For teams looking to improve metrics like user retention, enhanced user workflows, or increase the amount their users can do on-chain, integrating and working with Dinero through pxETH is an attractive decision.
This all-in-one approach allows Dinero to address both liquidity and utility, giving users a staking solution that’s compatible with other DeFi platforms while also providing unique benefits within the Dinero network.
A major feature that sets Dinero apart is its focus on adaptability for a wide range of institutional clients, alongside its appeal to retail DeFi users. By designing ipxETH with a high degree of interoperability, Dinero has created an asset that’s flexible enough to serve different segments of the market. For instance, while retail users might use pxETH for staking and accessing liquidity in DeFi pools, institutional investors can leverage ipxETH as a stable, yield-bearing asset that integrates seamlessly with their broader financial operations. This adaptability is essential in attracting a wide user base, which Dinero views as crucial to both the growth of pxETH and the expansion of its own ecosystem.
This approach is reflected in Dinero’s partnerships and integrations within the DeFi space, which ensure that pxETH remains a liquid and useful asset across a wide range of DeFi protocols. By embedding pxETH within a network of yield optimization platforms, lending protocols, and decentralized exchanges, Dinero is creating a token that functions as more than just a staking derivative; it becomes a key asset for yield generation and liquidity provision.
This focus on sustainable, long-term growth reflects Dinero’s ambitions to become a central player in the LST space, not only by capturing market share but by expanding the scope of what LSTs can achieve. The protocol’s efforts to build a diverse, integrated ecosystem around pxETH signal a commitment to value creation, where holders of the token can enjoy a range of benefits beyond simple staking rewards. This is a distinct contrast to some LST providers that may prioritize rapid growth over long-term utility. By keeping stability at the forefront, Dinero is setting itself up to be a reliable choice for users who want the security of staking with the added flexibility of maintaining liquidity in their assets, with the ability to choose between the two.
Additionally, Dinero’s roadmap indicates a continuous commitment to innovation within the LST market, with plans to expand its branded LST offerings and add additional integrations with other DeFi protocols. The success of ipxETH serves as a proof of concept for Dinero’s model, showing that branded, tailored LSTs can attract a loyal user base and create a thriving ecosystem. Future product developments will likely build upon the same foundation of utility, adaptability, and ecosystem compatibility, potentially opening the door for Dinero to offer branded staking tokens on other blockchain networks.
As Dinero continues to expand its suite of products and build new partnerships, it is well-positioned to capture a niche within the LST space by delivering a differentiated, high-quality staking experience that serves both individual and institutional users. In the next section, we’ll dive into the details of how Dinero’s LST model, particularly through ipxETH, aims to stand out in an increasingly competitive market.
Potential futures for Dinero
The work Dinero has done with LSTs has also catalyzed a wave of innovation around Ethereum staking, particularly as it relates to maximizing both yield and liquidity.
Dinero is inviting the wider DeFi ecosystem to rethink the potential of LSTs and Ethereum itself. By focusing on a product that combines staking rewards with liquidity, Dinero has opened doors to greater experimentation with ETH, encouraging developers and protocols to consider how staked assets can play a role in more complex financial systems. Instead of limiting itself to “just” an application that offers higher yields on staked ETH, Dinero can market to these evolving audiences and prove itself on multiple levels.
As other protocols look to Dinero’s example, we may see a more interconnected DeFi ecosystem, where ETH and other LSTs become assets that contribute to liquidity pools, governance, and even collateralized stablecoin issuance, creating an ecosystem that’s rich in utility and composability.
These structures allow projects to incentivize voting behavior in ways that align with their growth goals while empowering users to make choices that benefit both themselves and the protocols they support. Moving forward, Dinero’s governance model could expand to incorporate more granular forms of user engagement, such as tiered voting rights for long-term stakers or even delegated governance options, where experienced community members act as representatives for others. This would democratize governance, making it possible for users of all levels to engage meaningfully.
Another innovative direction for Dinero could involve experimenting with cross-chain governance models as it expands its product suite across multiple chains and Layer 2 solutions. By setting up a governance framework that spans multiple networks, Dinero would be able to extend its influence across different ecosystems, allowing for a more cohesive protocol strategy that adapts to each chain’s unique needs and opportunities. For example, governance could take into account the specific demands and user preferences of a Layer 2 environment while still maintaining alignment with Dinero’s overarching goals. This would set a precedent in DeFi governance, showing that decentralized protocols can scale governance across chains while preserving a unified, user-driven mission.
Dinero’s work in governance could spark a broader industry shift toward incentivized governance models that reward active and informed participation. By rewarding users who engage meaningfully in governance activities, Dinero is building a loyal user base that contributes to the protocol’s growth and resilience. This model, if adopted by other protocols, could lead to a DeFi landscape where governance is not only about decision-making but also about fostering protocol loyalty and long-term engagement. This shift could attract a new type of DeFi participant: one who is invested not only financially but also strategically, creating a more stable and community-oriented environment for DeFi growth.
Dinero’s potential revamped governance approach and innovative LST offerings mark it as a trailblazer within DeFi. By driving experimentation with ETH utility and advocating for user-driven protocol control, Dinero is inspiring the development of governance frameworks that value flexibility, sustainability, and engagement. As it continues to expand and refine its governance model, Dinero has the potential to redefine what effective DeFi governance looks like, promoting a future where decentralized protocols are adaptable, user-centric, and positioned for sustainable growth across chains and user bases.
What does Dinero do better and how does this evolve?
Looking forward, Dinero’s roadmap suggests an ambitious evolution that could significantly impact both the DeFi and institutional finance landscapes. As the protocol continues to roll out new products, it’s moving toward becoming a key infrastructure provider across DeFi, bridging that gap between traditional finance and decentralized ecosystems. One of the key aspects of this trajectory involves Dinero’s branded LSTs, which are set to grow beyond Ethereum, allowing other Layer 1 and Layer 2 networks to launch their own staking products on Dinero’s infrastructure. By becoming a foundational staking infrastructure, Dinero could emerge as the backbone for decentralized finance on multiple chains, supporting assets and protocols across the ecosystem with tailored staking options.
The introduction of pxUSD adds another layer to Dinero’s ecosystem, offering a decentralized, collateral-backed stablecoin that has the potential to become a widely used medium of exchange. This stablecoin is strategically positioned to complement pxETH by giving users access to a stable, liquid asset that can be used in tandem with their staking activities. With pxUSD, Dinero could expand its presence in DeFi markets, offering a stablecoin solution that integrates seamlessly with its existing products and opens up additional avenues for yield generation.
As more DeFi applications and dApps incorporate pxUSD, Dinero’s influence could extend to areas like payments, lending, and liquidity provision on Ethereum, creating an interconnected web of products that drive value back into the protocol.
We’ve seen significant growth in the stablecoin market map recently, with PayPal and Ethena leading the way in terms of innovation. While the usual culprits (USDT or USDC) still control the vast majority of market share, there’s a lot to be said about stablecoins remaining as crypto’s “killer app.” Recently, Stripe made an acquisition of Bridge for $1 billion, claiming “stablecoins are superconductors for financial activities.” Stablecoins aren’t just digital dollars, but a superior version of the traditional financial rails that are slow, inaccessible during crucial moments, and significantly more expensive than the alternatives of crypto.
With a stablecoin like pxUSD, Dinero would enter a space where they control products across some of crypto’s most fundamental pillars: LSTs, stablecoins, and with the introduction of their third phase, an RPC layer for all types of users.
The next phase of Dinero’s development includes a permissionless RPC (remote procedure call) layer designed to open up public access to its network, reducing reliance on centralized infrastructure for data access and transaction processing. This RPC layer represents an essential step toward decentralization, as it would allow developers, users, and dApps to interact with Dinero’s ecosystem without relying on centralized, potentially costly services.
By enabling permissionless access, Dinero would be aligning with its ethos of user empowerment and decentralization, providing critical infrastructure that supports a truly decentralized financial system. In this sense, Dinero’s RPC layer could pave the way for a more open, resilient network that benefits the wider Ethereum ecosystem and beyond.
Dinero’s phased expansion reflects a clear focus on long-term, iterative growth, particularly by fostering an ecosystem of products that build upon one another. The liquidity of pxETH will likely support pxUSD adoption, as pxUSD would benefit from deep liquidity pools created by pxETH and ipxETH stakers.
As these products interlock, Dinero could achieve a network effect where each new launch enhances the value and utility of previous offerings. This interconnectedness is not only beneficial for Dinero’s growth but also creates a self-sustaining ecosystem where assets are highly integrated, allowing for more efficient capital use and yield generation across its network.
With the expected growth in demand for decentralized finance solutions from institutional investors, Dinero’s institutional offering, ipxETH, represents a significant step forward. As more accredited investors look to diversify into crypto, ipxETH provides a compliant and simplified gateway into Ethereum staking, which could attract a wave of new capital into the protocol. The increasing adoption of ipxETH would likely reinforce Dinero’s brand reputation and bolster its capital reserves, giving it the means to expand its suite of DeFi services. By catering to both individual and institutional needs, Dinero could become a major player in facilitating the next phase of DeFi’s growth, where traditional finance and DeFi begin to merge.
Over time, Dinero’s growth trajectory could redefine how staking is perceived and utilized within decentralized finance. Its approach to creating a scalable, yield-generating ecosystem—spanning liquid staking, stablecoins, and decentralized infrastructure—reflects a commitment to building a versatile financial platform.
As the protocol matures, it could serve as a model for how DeFi protocols achieve sustainability and scalability, reducing their reliance on short-term incentives in favor of long-term, value-driven products. This approach aligns Dinero with some of the most critical trends in DeFi today, where protocols are increasingly focused on resilience, user trust, and utility rather than speculative growth.
If successful, Dinero’s phased approach could lead to a self-sustaining ecosystem with an interconnected suite of assets and tools that attract users across different segments. From retail DeFi enthusiasts to institutional investors, Dinero’s offerings could appeal broadly, driven by an ecosystem that balances the need for liquidity, yield, and decentralization. By setting up infrastructure and products that can scale with DeFi’s growth, Dinero positions itself to be a key pillar in the sector’s evolution, playing a role in everything from liquidity provision to decentralized governance and cross-chain integrations.
In the coming years, Dinero’s ability to execute on this roadmap will be crucial in determining its impact within DeFi. If the protocol achieves its vision, Dinero’s model could offer a blueprint for sustainable DeFi growth, one that attracts a diverse user base and creates a thriving, long-lasting ecosystem of financial products tailored to the evolving demands of DeFi and crypto’s continued mass adoption more broadly.
Disclaimer: This report was commissioned by Dinero. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Dinero began as Redacted, a project that initially emerged during the DeFi “Curve Wars” in 2021 and 2022. The Curve Wars were a period marked by fierce competition among protocols to gain governance power and control liquidity on Curve, a decentralized exchange focused on stablecoin trading. Redacted’s original purpose was to acquire voting power on Curve to direct liquidity flows, ultimately benefiting projects associated with its ecosystem.
Over time, the team behind Redacted saw the limitations of solely focusing on governance and recognized an opportunity to expand their ambitions. This shift led to a rebranding as Dinero, reflecting a broader vision for what the protocol could offer in the DeFi space beyond the narrow scope of governance wars.
At that time, there really wasn’t a singular protocol that offered synergies between product offerings - higher yields, a decentralized medium of exchange, and a permissionless transaction relayer to cater to users at every part of the stack. And there still isn’t. DeFi might be interconnected, but if you take a look at some of the largest protocols currently in the space, most teams prefer to stick to one vertical and iterate from there.
The team behind Dinero began to work towards a new type of vision in late 2023, deciding that this was the most ambitious and potentially rewarding opportunity available to them, making the choice to essentially go all-in on expanding their product suite around a central liquid staking token, pxETH.
Dinero has evolved with a new approach, positioning itself as a high-end DeFi protocol aimed at more than just standard yield generation. It’s pivoted from targeting only individual DeFi users toward a business-to-business (B2B) and institutional focus, creating what can be described as “white glove” services within decentralized finance.
This shift has allowed Dinero to rethink its product offerings and aim for solutions that cater to larger entities and more sophisticated users, who might be seeking stability, reliability, and sustainable returns in the highly volatile crypto market. By broadening its scope, Dinero is aligning itself to be more than just a protocol for DeFi enthusiasts, targeting serious institutional players as well.
Dinero’s redefined vision is centered around an idea of scalability and creating products that not only grow independently but also contribute to the growth of the Dinero ecosystem as a whole, without compromising on the needs of one product over another. To achieve this, Dinero offers a suite of products specifically designed to address some of the critical needs in DeFi, such as liquidity management, sustainable yield generation, and asset efficiency across multiple domains.
Unlike traditional protocols that rely heavily on liquidity mining or unsustainable incentives to attract users, Dinero’s strategy revolves around creating products that can drive organic growth. This approach aims to make Dinero’s offerings appealing in both bull and bear markets, giving it a more resilient business model.
One of Dinero’s most innovative product categories lies in Liquid Staking Tokens (LSTs).
LSTs are digital assets that represent staked assets while maintaining their liquidity, meaning holders can still trade or use these tokens within DeFi ecosystems without losing the staking rewards. In simpler terms, LSTs allow users to keep earning staking rewards on their assets while using them for other purposes.
However, Dinero's pxETH stands out as a flagship product and offers a different view towards adoption than other LSTs do.
As an Ethereum-based LST, pxETH allows users to participate in Ethereum’s staking economy while still having liquidity within the broader DeFi ecosystem. Given Ethereum’s role as a foundational layer for DeFi, having an accessible, liquid staking solution that offers reliable returns is crucial for institutional investors, dApps, and individual users alike.
pxETH seeks to offer this liquidity while remaining competitive with established liquid staking providers such as Lido and Rocket Pool, which have dominated the market by providing large-scale, decentralized staking solutions.
Above all, pxETH is the yield baseplate underpinning the entirety of the Dinero protocol. When users navigate to the app, they’re presented with the option to opt into the system - all of this begins with pxETH.
Dinero aims to distinguish itself from other LST providers by creating what they define as “branded” LSTs tailored for specific use cases and designed to meet the needs of a diverse range of users, all leveraging pxETH and its architecture. This strategic focus aligns with the protocol’s mission to be an all-encompassing DeFi service that offers more than just a straightforward staking option.
With branded LSTs, users can deposit their ETH on an L2, mint apxETH, route the assets through LayerZero, and finally return users a branded LST on that chain in return. The Dinero protocol can facilitate greater cross-chain liquidity, expand its brand, and further its vision of offering diverse LST-based products for a wider user base.
The creation of pxETH and branded LSTs represents a deliberate move by Dinero to capture a share of the growing liquid staking market. By catering to different audiences (across various blockchains), the Dinero ecosystem can grow and let users make a decision on how their assets gain yield.
As Ethereum increasingly solidifies its position as a form of programmable money, demand for flexible staking solutions is expected to rise. Dinero’s branded LSTs - which leverage the unique architecture of pxETH - aim to offer distinct advantages tailored to specific user needs, making them an attractive alternative to existing solutions. The decision to launch branded LSTs on top of pxETH was quite simple - their design makes it easy to build ancillary products regardless of underlying chain. At their core, these branded LSTs are essentially wrappers for apxETH, which receive the bulk of staking rewards.
Dinero hopes to position its existing and future branded LSTs as a preferred choice, especially for users who value a white glove service experience and long-term sustainability over short-term incentives. On top of being innovative in their approach, the data - which will be explored in a later section - suggests that Dinero’s product suite consistently delivers higher staking yields than its competitors.
Dinero’s transition from Redacted to a full-fledged DeFi protocol targeting scalable products and institutional-grade solutions becomes clear. DeFi has experienced a tumultuous growing phase since its humble beginnings in summer of 2020. Through it all, the demand for LSTs like stETH has remained a constant - Dinero is working to continue the work done by its predecessors and innovate on these learnings.
Beyond pxETH and its branded LSTs, Dinero has another vertical within the product suite that has yet to be tested at scale. We’ve seen larger institutions buy into the crypto ecosystem through ETFs, and occasionally see collaborations from larger DeFi protocols with giants of traditional finance, though these have remained few and far between. Instead of focusing solely on crypto users, Dinero wanted to build a product that caters specifically to institutions - enter ipxETH.
Short for institutional pxETH, ipxETH is Dinero’s liquid staking solution that abstracts away the complexities of DeFi and simplifies Dinero under a permissioned ecosystem. One of the key distinctions to make between pxETH and ipxETH is that while users are able to take pxETH and use it across DeFi, ipxETH is a pure play on offering institutions ETH staking yield without the hassle. These are two distinct audiences, as it’s unlikely most ETH stakers would want to take their assets and create additional risk through leverage or LP positions - but for many other crypto power users, this may be the entire appeal of a product like pxETH.
While most crypto users don’t fall into the potential target market for a product like ipxETH, that doesn’t mean the protocol can’t cater to both sides simultaneously. Where some may feel comfortable with pxETH, others, like institutions and their AUMs, are more of a better fit for ipxETH. Dinero’s history has been one of constant change, and this recent shift towards a heightened focus on branded LSTs, pxETH adoption, and now the introduction of ipxETH is no different from their past. The Curve Wars might be over but the team’s desire to innovate is far from it.
This emphasis on pxETH and apxETH is not just about entering the staking market, but about redefining it by offering tailored solutions that meet the complex needs of modern DeFi users. Dinero has worked to create a suite of products that can scale simultaneously, while managing to target these different user groups. With the introduction of a powerful two-token model in pxETH and apxETH, Dinero created a trojan horse for product innovation in DeFi: from these come branded LSTs and ipxETH, products built leveraging the Dinero stack.
With the groundwork laid, the next section will delve deeper into the mechanics of liquid staking, Dinero’s unique approach with ipxETH, and how it seeks to differentiate itself within a competitive landscape while still innovating on net-new products and features.
How does Dinero function relative to other LST providers?
LSTs are an innovative solution designed to increase the flexibility of staked assets, allowing users to earn staking rewards while still using their tokens within the broader DeFi ecosystem. Essentially, LSTs represent staked assets in a liquid form, so users don’t have to choose between staking their assets for rewards or retaining liquidity to participate in other DeFi protocols.
Dinero positions itself as a unique player among well-established protocols like Lido, Rocket Pool, and Frax. Each of these protocols offers distinctive staking approaches, creating a varied landscape in which Dinero aims to compete and coexist.
Lido is one of the leading platforms in the liquid staking space, known for its simplicity and large market share. Through Lido, users can stake their assets on multiple blockchains, receiving a liquid derivative like stETH for Ethereum staking. This approach allows users to earn staking rewards while retaining the flexibility to use stETH in various DeFi applications.
Lido’s dominance is largely due to its accessibility and the ease with which users can engage in liquid staking. By centralizing the staking process but distributing control among a set of operators, Lido maintains a high level of security and liquidity while also positioning itself as a go-to platform for users seeking a straightforward staking solution. This broad compatibility with DeFi protocols has helped Lido become the largest LST provider on Ethereum, establishing its reputation as a dependable and user-friendly staking solution.
Rocket Pool takes a more decentralized approach to staking, catering to users who prioritize decentralization and want a role in network security. Unlike Lido, Rocket Pool enables users to set up their own nodes and participate as node operators. By decentralizing the staking process, Rocket Pool enhances the security and resilience of the Ethereum network while offering rewards to individual node operators. Additionally, Rocket Pool’s model provides more flexibility to users by allowing them to contribute smaller amounts of ETH, which are pooled together to meet Ethereum’s staking requirements. For users with a long-term commitment to decentralization and self-sovereignty, Rocket Pool is an appealing option, combining the benefits of LSTs with a protocol that values user control and contribution to network security.
Frax offers another unique angle within the LST landscape by focusing on stablecoin integrations and yield optimization. Frax aims to bridge the gap between stable assets and liquid staking, with a focus on maximizing yield and maintaining price stability for its token holders.
While not as established in the LST space as Lido or Rocket Pool, Frax is positioned to capture a niche segment of the market that seeks both stability and returns from their staking activities. By using Frax’s platform, users can participate in staking while retaining access to assets that are designed to be less volatile, aligning with Frax’s broader goal of supporting a more stable DeFi ecosystem.
Dinero enters this landscape with pxETH and a two-token approach - pxETH and apxETH, aiming to bring a differentiated approach to liquid staking. Rather than simply offering a liquid staking option, Dinero seeks to capture different segments of users, including individuals, dApps, and institutions, by positioning pxETH as a multipurpose, versatile asset beyond something more basic like rETH or stETH. As it stands, leading LST providers don’t offer additional products wrapped around their main LSTs. Sure, users can take something like rETH or stETH and use it across DeFi, but these applications take a more hands-off approach. Dinero saw this and decided that there were only a few options that would lead to a successful rise in market capture in the near future:
- Remain a pure LST provider and let the market decide based on staking yield and risk tolerance
- Differentiate on the product suite and offer a truly unique experience, letting this drive growth back to the LST (in Dinero’s case, pxETH)
They took the ladder, and their strategy has worked so far, with Dinero’s total value locked (or TVL for short) sitting at over $115 million or 36,000 ETH - up from just 10,000 ETH at the start of 2024.
Here’s how it all works.
With other LSTs, the typical user flow involves sending ETH and receiving an LST in return - like stETH, rETH, and so on. With Dinero, users can opt to receive either pxETH or apxETH, depending on their individual preferences. For those that prefer capital efficiency and utility across DeFi, pxETH is the right LST as this lets them take their assets and earn boosted yields across other DeFi applications. For those who simply prefer increased staking rewards on their ETH, apxETH is the way to go, earning the majority of rewards while others choose to opt out of receiving these ETH rewards.
It’s worth noting that while the protocol and its varied product suite may come across as a pure business-to-business (b2b) play, Dinero leverages both ends of the spectrum and caters to users first and foremost. In fact, most of their work thus far has been on the business-to-consumer (b2c) front, offering pxETH and apxETH with a user-centric approach.
For those that navigate to the Dinero app and find themselves presented with a few options on where to put their ETH, it’s easy for them to simply choose pxETH, in the same way it’s simple for other L1s or L2s to integrate with Dinero and leverage the branded LST approach.
As highlighted earlier, Dinero’s team saw an opportunity to really innovate across different levels of DeFi, all under the hood of one application and a consistent user experience.
Dinero’s focus on branded LSTs is an attempt to cater to specific demands and provide unique functionalities within each staking product. By doing so, Dinero aims to make pxETH not only a tool for staking but also a building block for more complex DeFi applications, potentially offering additional yield or benefits through its integration within the Dinero ecosystem.
Offering branded LSTs lets Dinero unlock more opportunities for native yield on separate L2s. In the scenario where Dinero partners with leading L2s, users are then able to hold an LST like apxETH and earn yield instead of passively holding ETH without benefiting from it. L2s would be able to incentivize users with this, whereas in the past, users were left with less opportunities on L2s than they were on mainnet. With branded LSTs expanding to other L1s, Dinero is able to gain an advantage or jumpstart with new ecosystems - with the more recent announcement of branded LSTs on Sei, Dinero is working on expanding their reach and unlocking liquidity cross-chain.
To give a more concrete example, Dinero recently entered into partnerships with Arbitrum - a leading Ethereum L2 - with the launch of orbETH, an Arbitrum-native ETH liquid staking solution and zkSync more recently, with their zkETH product.
A defining aspect of Dinero’s approach is its emphasis on creating an ecosystem on top of pxETH rather than just a standalone staking token with singular utility. There is a lot to be said about the recognized utility and clear demand for LSTs (just examine Lido’s TVL since launch) but there isn’t nearly enough discussion about expanding opportunities for LST holders - Dinero is fixing this. If there’s a collective belief that ETH’s growth as a widely used digital currency is set to continue over the coming years and decades, then there should exist sufficient infrastructure for all types of users, developers, or teams that wish to build around it.
The bold vision of Dinero isn’t limited to scaling TVL and sitting idly. Part of their strategy to bolster pxETH growth includes partnerships with other DeFi protocols and blockchains, allowing pxETH to be used in yield optimization strategies, native-yield flywheels, collateral in lending platforms, or as a liquidity source in decentralized exchanges - Dinero simply provides the tools to make this a reality.
By embedding pxETH into various aspects of the cross-chain DeFi ecosystem, Dinero positions itself to offer a liquid staking product that provides more than just passive rewards, targeting users who wish to utilize their staked assets actively across different DeFi channels. This is of course possible with assets like stETH or rETH, though Dinero’s strategy of unbundling the utility of these LSTs into two distinct user strategy sets has yet to be tested.
We’ve seen many institutions recently pivoting from staunch, anti-crypto stances to overwhelming support, whether it’s the numerous ETFs and billions of inflows, traditional financial companies like PayPal launching stablecoins, RWA (real-world asset) product offerings and significant US treasury demand fueled by crypto, or general policy changes that are pro-crypto. Dinero wants to become this white glove service for institutions that may want crypto exposure but have been previously unwilling to deal with the complexities.
While protocols like Lido, Rocket Pool, and Frax have built impressive user bases, Dinero aims to carve out its niche by enhancing the usability and adaptability of its LST offerings. LSTs are popular due to the collective belief in Ethereum’s network, ecosystem, and value as a token across every subsector of its ecosystem. LSTs are used because the majority of crypto wants to earn a passive return on an asset they’d otherwise be holding regardless, making it
The intention behind pxETH is not only to outperform the staking returns provided by competitors but to elevate the user experience by integrating more functionalities and compatibility within the broader DeFi landscape. This focus on utility shows Dinero’s ambition to not just join the ranks of LST providers but to redefine the possibilities of what LSTs can offer, with an eye toward making staking accessible for all institutions. In the future, it’s likely more teams adopt a model similar to Dinero’s and increase innovation around these more bespoke LST offerings.
If we take a look at Dinero’s historical APY offerings on apxETH, we see a very healthy range despite some volatility:
Dinero wants to capture a broad spectrum of demand and provide value in an evolving DeFi market, primarily through its two-pronged approach of collaborating with other L1s and L2s through Branded LSTs and their institutional focus via ipxETH. As far as other LSTs go, we can navigate to DeFillama and see the top yieldings LSTs relative to apxETH:
Unlike the LST platforms listed, Dinero’s approach focuses on providing customized staking solutions that meet the needs of various users.For example, pxETH, isn’t simply a token representing staked ETH; it’s a versatile asset designed to integrate seamlessly into Dinero’s wider ecosystem, which offers staking rewards, liquidity options, and access to other services.
The staking yield is obviously a large part of the appeal, but one of DeFi’s innate advantages over traditional financial systems is its ability to offer composability between financial platforms. For teams looking to improve metrics like user retention, enhanced user workflows, or increase the amount their users can do on-chain, integrating and working with Dinero through pxETH is an attractive decision.
This all-in-one approach allows Dinero to address both liquidity and utility, giving users a staking solution that’s compatible with other DeFi platforms while also providing unique benefits within the Dinero network.
A major feature that sets Dinero apart is its focus on adaptability for a wide range of institutional clients, alongside its appeal to retail DeFi users. By designing ipxETH with a high degree of interoperability, Dinero has created an asset that’s flexible enough to serve different segments of the market. For instance, while retail users might use pxETH for staking and accessing liquidity in DeFi pools, institutional investors can leverage ipxETH as a stable, yield-bearing asset that integrates seamlessly with their broader financial operations. This adaptability is essential in attracting a wide user base, which Dinero views as crucial to both the growth of pxETH and the expansion of its own ecosystem.
This approach is reflected in Dinero’s partnerships and integrations within the DeFi space, which ensure that pxETH remains a liquid and useful asset across a wide range of DeFi protocols. By embedding pxETH within a network of yield optimization platforms, lending protocols, and decentralized exchanges, Dinero is creating a token that functions as more than just a staking derivative; it becomes a key asset for yield generation and liquidity provision.
This focus on sustainable, long-term growth reflects Dinero’s ambitions to become a central player in the LST space, not only by capturing market share but by expanding the scope of what LSTs can achieve. The protocol’s efforts to build a diverse, integrated ecosystem around pxETH signal a commitment to value creation, where holders of the token can enjoy a range of benefits beyond simple staking rewards. This is a distinct contrast to some LST providers that may prioritize rapid growth over long-term utility. By keeping stability at the forefront, Dinero is setting itself up to be a reliable choice for users who want the security of staking with the added flexibility of maintaining liquidity in their assets, with the ability to choose between the two.
Additionally, Dinero’s roadmap indicates a continuous commitment to innovation within the LST market, with plans to expand its branded LST offerings and add additional integrations with other DeFi protocols. The success of ipxETH serves as a proof of concept for Dinero’s model, showing that branded, tailored LSTs can attract a loyal user base and create a thriving ecosystem. Future product developments will likely build upon the same foundation of utility, adaptability, and ecosystem compatibility, potentially opening the door for Dinero to offer branded staking tokens on other blockchain networks.
As Dinero continues to expand its suite of products and build new partnerships, it is well-positioned to capture a niche within the LST space by delivering a differentiated, high-quality staking experience that serves both individual and institutional users. In the next section, we’ll dive into the details of how Dinero’s LST model, particularly through ipxETH, aims to stand out in an increasingly competitive market.
Potential futures for Dinero
The work Dinero has done with LSTs has also catalyzed a wave of innovation around Ethereum staking, particularly as it relates to maximizing both yield and liquidity.
Dinero is inviting the wider DeFi ecosystem to rethink the potential of LSTs and Ethereum itself. By focusing on a product that combines staking rewards with liquidity, Dinero has opened doors to greater experimentation with ETH, encouraging developers and protocols to consider how staked assets can play a role in more complex financial systems. Instead of limiting itself to “just” an application that offers higher yields on staked ETH, Dinero can market to these evolving audiences and prove itself on multiple levels.
As other protocols look to Dinero’s example, we may see a more interconnected DeFi ecosystem, where ETH and other LSTs become assets that contribute to liquidity pools, governance, and even collateralized stablecoin issuance, creating an ecosystem that’s rich in utility and composability.
These structures allow projects to incentivize voting behavior in ways that align with their growth goals while empowering users to make choices that benefit both themselves and the protocols they support. Moving forward, Dinero’s governance model could expand to incorporate more granular forms of user engagement, such as tiered voting rights for long-term stakers or even delegated governance options, where experienced community members act as representatives for others. This would democratize governance, making it possible for users of all levels to engage meaningfully.
Another innovative direction for Dinero could involve experimenting with cross-chain governance models as it expands its product suite across multiple chains and Layer 2 solutions. By setting up a governance framework that spans multiple networks, Dinero would be able to extend its influence across different ecosystems, allowing for a more cohesive protocol strategy that adapts to each chain’s unique needs and opportunities. For example, governance could take into account the specific demands and user preferences of a Layer 2 environment while still maintaining alignment with Dinero’s overarching goals. This would set a precedent in DeFi governance, showing that decentralized protocols can scale governance across chains while preserving a unified, user-driven mission.
Dinero’s work in governance could spark a broader industry shift toward incentivized governance models that reward active and informed participation. By rewarding users who engage meaningfully in governance activities, Dinero is building a loyal user base that contributes to the protocol’s growth and resilience. This model, if adopted by other protocols, could lead to a DeFi landscape where governance is not only about decision-making but also about fostering protocol loyalty and long-term engagement. This shift could attract a new type of DeFi participant: one who is invested not only financially but also strategically, creating a more stable and community-oriented environment for DeFi growth.
Dinero’s potential revamped governance approach and innovative LST offerings mark it as a trailblazer within DeFi. By driving experimentation with ETH utility and advocating for user-driven protocol control, Dinero is inspiring the development of governance frameworks that value flexibility, sustainability, and engagement. As it continues to expand and refine its governance model, Dinero has the potential to redefine what effective DeFi governance looks like, promoting a future where decentralized protocols are adaptable, user-centric, and positioned for sustainable growth across chains and user bases.
What does Dinero do better and how does this evolve?
Looking forward, Dinero’s roadmap suggests an ambitious evolution that could significantly impact both the DeFi and institutional finance landscapes. As the protocol continues to roll out new products, it’s moving toward becoming a key infrastructure provider across DeFi, bridging that gap between traditional finance and decentralized ecosystems. One of the key aspects of this trajectory involves Dinero’s branded LSTs, which are set to grow beyond Ethereum, allowing other Layer 1 and Layer 2 networks to launch their own staking products on Dinero’s infrastructure. By becoming a foundational staking infrastructure, Dinero could emerge as the backbone for decentralized finance on multiple chains, supporting assets and protocols across the ecosystem with tailored staking options.
The introduction of pxUSD adds another layer to Dinero’s ecosystem, offering a decentralized, collateral-backed stablecoin that has the potential to become a widely used medium of exchange. This stablecoin is strategically positioned to complement pxETH by giving users access to a stable, liquid asset that can be used in tandem with their staking activities. With pxUSD, Dinero could expand its presence in DeFi markets, offering a stablecoin solution that integrates seamlessly with its existing products and opens up additional avenues for yield generation.
As more DeFi applications and dApps incorporate pxUSD, Dinero’s influence could extend to areas like payments, lending, and liquidity provision on Ethereum, creating an interconnected web of products that drive value back into the protocol.
We’ve seen significant growth in the stablecoin market map recently, with PayPal and Ethena leading the way in terms of innovation. While the usual culprits (USDT or USDC) still control the vast majority of market share, there’s a lot to be said about stablecoins remaining as crypto’s “killer app.” Recently, Stripe made an acquisition of Bridge for $1 billion, claiming “stablecoins are superconductors for financial activities.” Stablecoins aren’t just digital dollars, but a superior version of the traditional financial rails that are slow, inaccessible during crucial moments, and significantly more expensive than the alternatives of crypto.
With a stablecoin like pxUSD, Dinero would enter a space where they control products across some of crypto’s most fundamental pillars: LSTs, stablecoins, and with the introduction of their third phase, an RPC layer for all types of users.
The next phase of Dinero’s development includes a permissionless RPC (remote procedure call) layer designed to open up public access to its network, reducing reliance on centralized infrastructure for data access and transaction processing. This RPC layer represents an essential step toward decentralization, as it would allow developers, users, and dApps to interact with Dinero’s ecosystem without relying on centralized, potentially costly services.
By enabling permissionless access, Dinero would be aligning with its ethos of user empowerment and decentralization, providing critical infrastructure that supports a truly decentralized financial system. In this sense, Dinero’s RPC layer could pave the way for a more open, resilient network that benefits the wider Ethereum ecosystem and beyond.
Dinero’s phased expansion reflects a clear focus on long-term, iterative growth, particularly by fostering an ecosystem of products that build upon one another. The liquidity of pxETH will likely support pxUSD adoption, as pxUSD would benefit from deep liquidity pools created by pxETH and ipxETH stakers.
As these products interlock, Dinero could achieve a network effect where each new launch enhances the value and utility of previous offerings. This interconnectedness is not only beneficial for Dinero’s growth but also creates a self-sustaining ecosystem where assets are highly integrated, allowing for more efficient capital use and yield generation across its network.
With the expected growth in demand for decentralized finance solutions from institutional investors, Dinero’s institutional offering, ipxETH, represents a significant step forward. As more accredited investors look to diversify into crypto, ipxETH provides a compliant and simplified gateway into Ethereum staking, which could attract a wave of new capital into the protocol. The increasing adoption of ipxETH would likely reinforce Dinero’s brand reputation and bolster its capital reserves, giving it the means to expand its suite of DeFi services. By catering to both individual and institutional needs, Dinero could become a major player in facilitating the next phase of DeFi’s growth, where traditional finance and DeFi begin to merge.
Over time, Dinero’s growth trajectory could redefine how staking is perceived and utilized within decentralized finance. Its approach to creating a scalable, yield-generating ecosystem—spanning liquid staking, stablecoins, and decentralized infrastructure—reflects a commitment to building a versatile financial platform.
As the protocol matures, it could serve as a model for how DeFi protocols achieve sustainability and scalability, reducing their reliance on short-term incentives in favor of long-term, value-driven products. This approach aligns Dinero with some of the most critical trends in DeFi today, where protocols are increasingly focused on resilience, user trust, and utility rather than speculative growth.
If successful, Dinero’s phased approach could lead to a self-sustaining ecosystem with an interconnected suite of assets and tools that attract users across different segments. From retail DeFi enthusiasts to institutional investors, Dinero’s offerings could appeal broadly, driven by an ecosystem that balances the need for liquidity, yield, and decentralization. By setting up infrastructure and products that can scale with DeFi’s growth, Dinero positions itself to be a key pillar in the sector’s evolution, playing a role in everything from liquidity provision to decentralized governance and cross-chain integrations.
In the coming years, Dinero’s ability to execute on this roadmap will be crucial in determining its impact within DeFi. If the protocol achieves its vision, Dinero’s model could offer a blueprint for sustainable DeFi growth, one that attracts a diverse user base and creates a thriving, long-lasting ecosystem of financial products tailored to the evolving demands of DeFi and crypto’s continued mass adoption more broadly.
Disclaimer: This report was commissioned by Dinero. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
