diff --git a/CHANGELOG.md b/CHANGELOG.md
index d155fd927..d64595acf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -49,6 +49,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+- [751](https://github.com/persistenceOne/pstake-native/pull/751) Set LSM bond factor as -1 by default.
 - [750](https://github.com/persistenceOne/pstake-native/pull/750) Shares to tokens.
 - [734](https://github.com/persistenceOne/pstake-native/pull/734) Host chain duplication check.
 - [731](https://github.com/persistenceOne/pstake-native/pull/731) Set limit to LSM deposit filtering.
diff --git a/x/liquidstakeibc/keeper/msg_server.go b/x/liquidstakeibc/keeper/msg_server.go
index d7931d3ba..d8a0a42de 100644
--- a/x/liquidstakeibc/keeper/msg_server.go
+++ b/x/liquidstakeibc/keeper/msg_server.go
@@ -66,6 +66,7 @@ func (k msgServer) RegisterHostChain(
 		UnstakeFee:                  msg.UnstakeFee,
 		RedemptionFee:               msg.RedemptionFee,
 		RedelegationAcceptableDelta: sdktypes.ZeroInt(),
+		LsmBondFactor:               sdktypes.NewDec(-1),
 	}
 
 	hc := &types.HostChain{