Lista DAO Introduces LP Collateral in Lending
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Lista DAO introduces LP-collateralized borrowing on BNB Chain, enabling PancakeSwap LP tokens to serve as collateral for lisUSD—allowing users to borrow without sacrificing pool yield. Launching alongside fresh BNB all-time highs and rising lending volumes, and backed by $3.5B+ in TVL, Lista is advancing capital efficiency for LPs across the ecosystem.
This launch lands as BNB sets fresh all-time highs—fueling demand for liquid staking and on-chain credit across BNB Chain. Lista DAO now anchors the ecosystem: the largest WLFI USD1 lending venue, the leading BNB liquid staking solution, and has risen to the #1 protocol by TVL on BNB Chain.
Lista DAO TVL Growth
Unlocking LP Liquidity Without Unwinding
LP capital has long been stranded in pools—earning fees but unavailable for credit.
Aave, the leading DeFi lending protocol, has supported LP tokens as collateral since its V2 AMM market and is now exploring deeper integration with Uniswap V4 in its upcoming V4 release. This model has long been proven on Ethereum—and now, BNB Chain is bringing the same capability through Lista DAO.
Lista changes this on BNB Chain by enabling PancakeSwap LP tokens to serve as collateral, so providers can borrow without unwinding positions—keeping liquidity deployed, fees accruing, and capital efficiency elevated.
The CDP Zone now accepts PancakeSwap LP tokens as collateral, allowing LPs to borrow lisUSD while their positions continue earning pool fees. By turning active LP tokens into
credit-eligible collateral, Lista extends LP utility and keeps liquidity fully deployed. Users can simply access it through the Lista Lending page, this innovation fits the need of not only end users but also protocols as well.
In its first phase, the integration focuses on high-liquidity pairs such as USDT/USDC and BNB/slisBNB, with additional pools across V2, V3, Infinity, and StableSwap to follow as adoption scales.
How It Works: Valuation, Risk Controls & Alignment
To ensure LP-collateralized borrowing is both practical and secure, Lista has introduced a dedicated LP Oracle and Manager system. This framework provides real-time valuation for LP tokens—which lack a direct market price—using conservative safety factors to keep the system stable even in volatile conditions. Deposited LP tokens are represented by lpUSD, an internal unit that adjusts dynamically to reflect collateral value.
Additional safeguards include borrowing caps on each LP type and circuit breakers that pause borrowing if major assets experience sharp price swings. In liquidation events, LP tokens are redeemed first, with Dutch auctions used as a backstop to maximize recovery. Beyond safety, 50% of interest and fees from LP-collateralized loans are shared with PancakeSwap, aligning incentives and reinforcing collaboration between both protocols.
Lista DAO x PancakeSwap
LP collateral introduces a new credit primitive for BNB Chain: LP equity becomes borrowable, yield stays on, and liquidity remains in-pool. Combining real-time on-chain pricing with conservative risk controls creates a sustainable flywheel for users, liquidity venues, and lenders alike. Beyond expanding lisUSD utility, this release codifies a partnership model where lending growth strengthens AMM depth—and deeper AMM liquidity, in turn, expands safe borrowing capacity. It’s a blueprint we will scale across more pools and markets as adoption grows.
Contact
Marketing Lead Kay
Lista DAO [email protected]
