Baumz <> Lido Strategic Collaboration Proposal

Community Grants / Initiatives
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Abstract
We propose a strategic collaboration between Baumz and Lido to bring institutional-grade trading infrastructure to Lido’s ecosystem, enabling Lido staking derivatives to serve as collateral or underlyings on Baumz perpetual markets.

1. Motivation & Value

  • Lido has built significant dominance in liquid staking and Ethereum infrastructure.

  • Baumz offers advanced on-chain derivatives architecture (CEX-like performance, Tri-Proof Oracle, fair fee model).

  • Combining strengths, we can deepen utility of Lido’s staked assets and bring leveraged trading to Lido users.

  • This offers new yield paths, hedging tools, and liquidity for both ecosystems.

2. Proposed Integration Paths

A. Staked ETH / Lido Token as Collateral

Allow Lido stETH / similar Lido derivatives to act as collateral on Baumz, enabling users to open leveraged perpetual positions while maintaining staking rewards.

B. Tokenized Lido Derivatives in Perp Pools

Create perpetual markets where the underlying is a Lido staking derivative — e.g. a stETH perpetual contract — with pricing that aggregates real staking value + market sentiment.

C. Shared Liquidity & Reward Programs

Launch joint incentive programs to bootstrap liquidity: e.g. LPs or traders using Lido-related perps get bonus rewards or rebates.

D. Governance & Risk Collaboration

Lido governance and Baumz protocol teams co-define risk parameters (liquidation thresholds, haircuts, oracle discounts) for using staking derivatives safely.

3. Technical & Operational Considerations

  • Oracle Integrity: Prices for stETH or derivative tokens must be fed reliably. Baumz’s Tri-Proof Oracle (TPO) can be extended for these tokens, combining Chainlink, Pyth, and other sources.

  • Smart Contract Integration: Interface modules to accept Lido token standards and link with Baumz margin logic.

  • Security & Audit: Joint audits to ensure collateral logic cannot be exploited.

  • Governance Permissions: Lido governance may need to vote to allow its token’s integration into derivatives systems.

  • Incentives & Bootstrapping: Allocation of rewards or rebates to early participants to ensure liquidity and adoption.

4. Benefits to Lido Ecosystem

  • Adds leverage / hedging tools for stakers

  • Drives additional revenue / fees shared across ecosystems

  • Expands liquidity flow into Lido-linked assets

  • Attracts derivatives traders to Lido’s staking derivative markets

  • Reinforces Lido’s position as not just staking protocol, but comprehensive DeFi infrastructure

5. Next Steps & Call for Discussion

  1. Open this post for community feedback and critique

  2. Form a small technical working group from both communities

  3. Build a proof-of-concept market (e.g. stETH perpetual) on testnet

  4. Run joint audits, risk assessments, and governance proposals

  5. If approved, bootstrap with reward/swap incentives

We believe this collaboration could set a new standard — where staking, trading, and decentralization converge.
We welcome input, questions, and suggestions from the Lido community on how best to shape this path forward.

— The Baumz Team

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Please fill out the form (https://tally.so/r/w5G0Pd). A member from the ProRel team will reach out to you if interested, thanks!