# Most underestimated beginner-friendly DeFi protocol

By [BezierFinance](https://paragraph.com/@bezierfinance) · 2022-12-16

---

Introducing Stake DAO liquid lockers
====================================

Explaining today the most underestimated beginner-friendly #DeFi protocol. Explaining @StakeDAOHQ’s liquid lockers.

First, let's look at the homepage:

[https://app.stakedao.org/r/bezierfinance](https://app.stakedao.org/r/bezierfinance)

home page

Here we can see multiple products, (liquid lockers, derivates, vote market and veSDT) we will go accross all of them in multiple #threads.

To understand Liquid lockers you need to first understand veTokenomics. It is a tokenomic model introduced by @curveDao where you can lock your tokens during different timeframes and depending of the lock time you will recieve veTokens representing your lock.

![VeTokenomics](https://storage.googleapis.com/papyrus_images/66e5cae01c05856d85b4c41e861a79bb40b2df3ea0cab31a8343a55c3ff53548.png)

VeTokenomics

With a veToken you can vote to incentivize a specific pool with the token inflation. For example if 100 CRV are printed per day and the pool tricrypto2 has received 50% of all veTokens votes it will get 50 CRV daily to share between liquidity providers. So to resume you lock your tokens and in exchange you get a vote power, a boost on your CRV rewards (2.5x for 4 year lock).

![Example of gauge vote result](https://storage.googleapis.com/papyrus_images/dd4ed68f5036b1738ee8dd912de31257aa1a50807789bed5b0a159182336b23b.png)

Example of gauge vote result

But the problem is that you only profit from the veTokens advantages if you lock them and use your voting power to boost your CRV rewards. Kinda difficult and time-taking for a beginner. This is where liquid lockers are helping.

With liquid lockers, instead of locking your CRV on curve directly you can lock them in the liquid locker and in exchange receive sdCRV. But what is the difference you might ask. The main advantage is in the name “liquid”. At any time you can exchange your sdToken for the underlying asset on curve.

![SdToken comparison](https://storage.googleapis.com/papyrus_images/189c19d99b0c51ccee126d3aef56e5d9cffd599f94cd3f568cf89726a088b931.png)

SdToken comparison

With sdTokens you also get increased APY when you lock your tokens because you will receive bribes in SDT for giving your vote power. (This is not mandatory). As you might guess you also get the native locking APR and additional liquidity providing rewards.

You can also stake your liquidity tokens and receive the CRV boost like if you had locked for 4 years. Finally if you own veSDT (the veToken of @stakeDao) your votes and yield are boosted when you use liquid lockers.

![](https://storage.googleapis.com/papyrus_images/ab253b52bcae0617d56f50672873db742dbfe8a064549b1e79a28d9694f46ad6.png)

This thread is not financial advice and you should make your own research. The docs:

[https://stakedao.gitbook.io/stakedaohq/platform/liquid-lockers](https://stakedao.gitbook.io/stakedaohq/platform/liquid-lockers)

To start out with lockers: [https://app.stakedao.org/r/bezierfinance](https://app.stakedao.org/r/bezierfinance)

---

*Originally published on [BezierFinance](https://paragraph.com/@bezierfinance/most-underestimated-beginner-friendly-defi-protocol)*