Review Lido ($LDO) – Liquidity for staked assets

A staking initiative designed to incentivize more people to stake Ethereum, growing TVL, and further distribute the supply of LDO tokens to people that help promote the benefits of stETH.

Concept Project – What Is Lido?

Lido is a liquid staking solution for ETH 2.0 backed by industry-leading staking providers. Lido lets users stake their ETH – without locking assets or maintaining infrastructure – whilst participating in on-chain activities, e.g. lending.

Lido attempts to solve the problems associated with initial ETH 2.0 staking – illiquidity, immovability, and accessibility – making staked ETH liquid and allowing for participation with any amount of ETH to improve the security of the Ethereum network.

For those of you who do not understand what staking is, this is the act of holding a certain amount of coins in a wallet or Nodes/Masternodes of a Blockchain project for a period of time to receive rewards. This reward is based on the effort spent including staked coin amount and stake duration.

Outstanding features

What is the project trying to achieve?

Lido’s referral program lets you earn LDO for spreading the values of staking Ethereum with Lido. Simply connect your wallet on referral.lido.fi to generate a unique Lido URL. Share this, get people staking, and earn LDO for every ETH staked using your referral link.

Through Lido’s referral program, you can contribute to the decentralization and security of the Ethereum network by incentivizing users to stake with a distributed validator set. The goal of Lido is to contribute to the security and decentralization of Ethereum through streamlined and integrated staking, making staking through a distributed validator set as simple and secure as possible.

Their referral program is intended to further spread the values of Lido and Ethereum, making Ethereum as secure a network as possible.

What is unique selling point?

Lido stands out with the following features:

• Flexibility: With ETH 2.0, you can stake an arbitrary amount of ETH on Lido to receive stETH at a ratio of 1:1. stETH can be staked, loaned, traded, etc. on any platform that supports stETH.
• Dual Yield: When you stake ETH on Lido, you will receive a yield, and if you stake or lend stETH, you will receive another yield, an effective passive income generating method.
• Increase capital efficiency: After stETH is authorized as collateral, users can use stETH to borrow UST – Stablecoin in Terra, then can buy and sell.

Road Map

Updating …

Technical Data

Key Mestrics

• Token Name: LDO token.
• Ticker: LDO.
• Blockchain: Ethereum.
• Token Standard: ERC-20.
• Contract: https://etherscan.io/token/0x5a98fcbea516cf06857215779fd812ca3bef1b32
• Token type: Governance.
• Total Supply: 1,000,000,000 LDO.
• Circulating Supply: 28,412,180 LDO.

Ref: https://blog.lido.fi/introducing-ldo/

Token Allocation

• DAO Treasury: 36.32%
• Investors: 22.18%
• Initial Lido Developers: 20%
• Founders & Future Employees: 15%
• Validators & Signature Holders: 6.5%

Founding members are also distributed LDO, with the respective amounts: 221,800,000 LDO for investors, 65,000,000 LDO for validators and signature holders, 200,000,000 LDO for initial Lido developers, and 150,000,000 LDO for founders and future employees.

Token Sale

They will have their LDO tokens unlocked on December 17, 2021, followed by a one-year vesting period.

You can, however, provide LDO as liquidity in respective liquidity mining programs (eg. SushiSwap, 1inch).

The tokens can be used for governance purposes but can’t move for one year from Dec 2020. In the year after that they will be unlocked and vested linearly on a per-block basis (so, in 1 year and 1 day about 0.3% of their total will be unlocked).

Token Release Schedule

The number of LDO tokens of the development team and investors will be locked for one year, then vesting for 1 year. 36% of LDO are unlocked in the DAO treasury. Anyone can make a proposal on how they can be used. The DAO can also make the decision to issue more tokens to raise capital, marketing, or encourage related plans.

Token Use Case

The LDO token governs all Lido DAO governance and network decisions to ensure its prolonged stability and decentralized decision-making to facilitate the growth of fair, trustless, and transparent liquid staking.

How to own the token?

Currently, you can only earn LDO tokens by buying them through listed exchanges. Unlocked LDO tokens are in the DAO treasury, accounting for 36% of the total supply.

Up to now, LDO has been traded with USDT and ETH pairs on exchanges such as 1Inch, Sushiswap, Uniswap, Hoo.com, etc.

Market and Community

Market

• 4,800,000 (Curve 4th emission LPs)
• 240,000 (LEGO treasury for grants)
• 500,000 (DeversiFi liquidity markets)
• 5,000,000 (Curve 3rd emission LPs)
• 100,000 (ARCx LP rewards)
• 250,000 (1inch LP rewards)
• 50,000 (Unslashed Finance insurance)
• 5,000,000 (Curve 2nd emission LPs)
• 5,000,000 (Curve 1st emission LPs)
• 4,000,000 (Airdrop rewards)
• Market cap: $10.802.159

Community

Lido’s following on Twitter has surged to 43.6k followers since our launch. They are also funding an open-ended challenge on anything related to DeFi, liquid staking, and Lido with a total prize pool of 10,000 LDO.

Backers

Team/Founder

Lido is governed by decentralized autonomous organizations (DAOs). The original members of Lido DAO include many famous names such as:

• Banteg: Core dev of yEarn Finance.
• CryptoCobain: KOL with over 220k followers.
• Anton Bukov: Co-founder of 1Inch.

Partner

Validators

Conclusion and analysis

In the context of DeFi growth, users are increasingly aiming to use capital more efficiently, so Lido DAO is facing an extremely large demand from the investment community. However, from the perspective of investors, with the current interest rate of Lido is quite low (7.6% APY) Lido is also difficult to attract small and medium investors. Besides, although it has been audited by Quantstamp and Sigma, the risks of Lido DAO will still remain.

Find more information about Lido:

Website: https://lido.fi/

Telegram: https://t.me/lidofinance

Twitter: https://twitter.com/lidofinance

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

Elise

Coincu research