Key focus
- About Lido finance, how it works, and the product
- Team, Partnership & Investors
- Financial Metrics
- Tokenomics (Demand and Supply)
- Conclusion ( Final thought)
WHAT IS LIDO FINANCE AND HOW DOES IT WORK
Lido is a leading liquid staking solution providing a simple and secure way to earn interest on your digital asset. By staking with lido your asset remains liquid & can be used across a range of Defi applications earning extra yield.
How does its work
Lido operates as a third party in providing providing staking services & rewards for users.
User stake their asset to the platform e.g ETH & receive a stETH for it. The ETH deposited into the platform is used by node operators to perform the POS (proof of stake service) for the Ethereum network.
Lido offers staking services for various chains such as
Ethereum with an APR of 6.7%
Polygon with an APR of 6.3%
Solana with an APR of 6.6%
Polkadot with an APR of 18.2%
Kasuma with is an APR of 17.4%
The staked token can be used across different apps & services
A few of them of - @matamask, @curve, @Aave, @1inche, @Balancer, and @uniswap
Smart contract audit;
The protocol has been audited severally by a few audit firms, a few of the audit tags are sigma prime security, Qrant stamp audit, Mixbytes audit
TEAM AND INVESTOR
A few of the lido finance team can be seen below
@skhomuti - developer
@kidsdream - contributor
@sammy_moroz- Data analyst
@kimonsh - NOM analyst
@ValeriTetu - GMT strategy
@degunsakor - an ad in automation
@zazu_eeka - DAO operation manager and many more
(the above are their yw
INVESTORS
Parafi capital, Bitscale capital, KRI, etc
FINANCIAL METRICS
Circulating market cap- $2.16b
Fully diluted market cap - $2.52b
Total value locked - $10.2b
Asset staked (annualized) $8.8b
Fees generated (30d) $43.46m
Fees (annualized) $532.55m
Active developers (30 days average) 30.87
Revenue (30 days) - $4.34m
Revenue (annualized) - $52.75m
Treasury - $342.29m
Daily active users (30 days average) - $543.8
-staked ETH (stETH information)
133, 017 depositors of ETH
Amount of staked ETH bridges 64,586
Seth on cumulative trading Volume on exchange
- $469m trading volume on the curve
- $29m trading volume on uni swap
- $97m trading volume on the balancer
- $17m trading volume on para swap
- $247m trading volume on 1inch aggregator
Revenue share: The revenue generated by the protocol is divided into two
The supply participant side takes a share of the staking reward that goes to the stakes
The protocol which takes a share of the staking reward that goes to the protocol (LDO holders + Node operators)
TOKENOMICS
The lido finance protocol token is called LDO, the LDO token holders own and govern the protocol.
This governance token gives the holders a going power to decide key parameters of the protocol liquid staking
1. Supply
Circulating supply 855,297, 464
Total supply 1,000,000,000
Max supply 1,000,000,000
LDO Supply distribution
DAO treasury holds 36.8% (253,200,000)
Investors 22.2% (seed round - 221,800,000, investors paradigm round - 100,000,000, investors dragon fly round- 10,000,000)
Initial developers 20.0% (200,000,000)
Founders & future employees - 15.00% ( 150,000,000)
Validators & signature holders 6.5% (65,000,000)
2. Demand
The lido tokens can be used to earn a yield on the protocol, portion. The staking reward goes to the LDO holders. Also, the stakers receive a share of the staking reward.
One other use case for the token is that it also serves as a governance token which enables its holders to vote or propose any change on the protocol mode of operations.
The community is also very bullish on the protocol with the following numbers of follower's
Twitter: 132k followers, with an average of 1k active engagers
Telegram: 14, 989 members and an average of 50 active members
Discord: 44,099 members with an average of 3k active members
CONCLUSION AND FINAL THOUGHT
Let me start by saying weldone, for making it up to this point.
Lido finance has a good product model, their services on liquid staking makes them stand out from their competitors
With a good tokenomics design, an active and bullish community, dedicated team and strong investors.
I will love to say that lido finance will do well in the future if they maintain the same momentum.
Notice: This is not a financial advice.
Some or the risk to still watch out for includes;
Smart contract risk and some other related risk that is associated with Defi.
Just play smart while using the protocol!!
This will be all for Lido finance
