The Big Move: Lido Ventures into Solana
Lido, known for its robust staking services primarily on Ethereum, is embarking on a journey to extend its reach to the vibrant waters of Solana, a rising layer 1 blockchain. The recent proposal by Chorus One announced a plan to create a liquid staking token dubbed stSOL, which will function much like the current stETH, accumulating rewards for its users.
Funding – Show Me the Money!
To kick off this ambitious project, funding will stream from the Lido Ecosystem Grants Organization. The proposal outlines a compensation structure that includes a request for a whopping 2 million vested LDO tokens. This isn’t just for show; it also includes a revenue-sharing deal ensuring that Chorus One pockets 20% of the protocol fees heading to Lido’s treasury.
Aiming High: The Road to Success
Chorus One isn’t shooting for the stars without a plan. They’ve laid out a roadmap with ambitious milestones. Key among these is a one-year cliff for unlocking tokens, where they aim to snag 2.5% of the staked SOL supply. Plus, another million tokens will switch gears into a one-year vesting schedule once Lido on Solana captures 25% of that same supply. Talk about lofty goals!
What’s the Buzz? Potential Benefits
The move to Solana can potentially boost Lido’s income streams significantly. A representative from Lido highlighted that they might set up a fee structure similar to Ethereum, where node operators and the Lido treasury share a 10% fee on rewards, which could eventually fuel a growing insurance fund. Expanding into other proof-of-stake chains seems like a reasonable strategy for sustaining growth.
Impressive Numbers and Future Outlook
As Lido continues its expansion, the numbers speak volumes. Currently, it boasts 256,964 ETH staked across almost 5,000 addresses, yielding around 7.1% APY. As ETH 2.0 approaches, these rewards are poised for an uptick, driven by the increasing demand for secure and decentralized staking options.
Market Reactions: LDO Token Takes Off
In line with Lido’s bold plans, their token, $LDO, has skyrocketed by 54% in just 24 hours, reaching $2.9. It’s also experiencing a massive week, boasting a 216% increase, likely egged on by a recent governance proposal aimed at diversifying a segment of the treasury. Could this growth signify even brighter days ahead for Lido?
