Lido Finance
Lido is a liquid staking solution that is available for ETH, MATIC, DOT, KSM & SOL. It allowing users to stake their assets whilst also being able to use them across DeFi in the form of staked tokens (stETH, stMATIC, etc) With the LDO token, users can participate in governance, which allows them to gain control over the protocol's parameters and treasury
Categories:
DeFi
Updated:
2023-03-10
Tags:
Proof of Stake
Ticker:
LDO
Token Strength.
Token Utility:
LDO is a governance token that grants holders control over the treasury and Lido Finance parameters (e.g., setting fees, assigning node operators and oracles, etc.) via the voting process
Demand Driver:
The only demand that LDO has relates to governance of the treasury and protocol. On the other hand, Lido is one the highest TVL liquid staking platforms, meaning that people trust it and this will have some residual effect on token demand
Value Creation:
Lido provides a liquid staking solution to PoS networks. Normally, staking tokens requires a minimum number of tokens and lockup periods. Thanks to Lido, users can now stake without minimum threshold and lockup periods, i.e., liquid staking. Moreover, users can use their staked tokens throughout DeFi. Currently, Lido supports ETH, MATIC, DOT, KSM & SOL
Value Capture:
The protocol gains value by allowing users to stake their PoS tokens without lockup periods allowing them to be used in DeFi. With a 5% revenue generated by staking rewards is added to the treasury, which helps the sustainability and development of the protocol. On the other hand, the LDO token only provides governance rights and does not offer much utility.
Business Model:
Lido Finance collects 10% of the staking rewards generated by validators, 5% goes to the treasury, and the remaining 5% goes to the validators.
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Protocol Analysis.
| Problems & Solutions | Lido Finance solves the problem of illiquidity by creating derivatives to staked assets. Also, it clears the barrier of staking by removing entry requirements and locking periods. In addition, the LDO token allows holders to govern the protocol and treasury. |
|---|---|
| Predecessors | Lido Finance is the industry leader, helping staking more accessible to everyone. LDO token is inspired by the UNI token since both act as a governance tokens. |
Investment Take
... coming soon
Tokenomics Timeline.
2020-12-17
Lido Finance Launch
Lido Finance went live
2021-01-05
TGE
$LDO token generation event
2021-09-16
Solana Expansion
$SOL can now be staked via Lido
2022-02-18
Kusama Expansion
$KSM can now be staked via Lido
2022-03-02
Polygon Expansion
$MATIC can now be staked via Lido
2022-05-18
Polkadot Expansion
$DOT can now be staked via Lido
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Allocation and Emission.
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Resources.
Author.
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