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Staking giant Lido looks to bring services to Solana

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One of many largest ETH 2.0 and Terra staking services is now trying to increase to different proof-of-stake chains, beginning with upstart layer 1 Solana. 

In a proposal in the present day on Lido’s governance boards, crypto infrastructure supplier Refrain One laid out a plan to construct “a liquid staking token (for now: stSOL) that will accrue staking rewards and represent staking positions with Lido validators on Solana,” comparable to Lido’s present interest-accruing stETH token.

Growth funding to bring Lido’s services to a further chain would come from the Lido Ecosystem Grants Group, a program Lido’s governance kicked off in March. Refrain One’s requested a compensation package deal together with 2,000,000 vested LDO tokens and a revenue-sharing mannequin that will entitle Refrain One to 20% of the income from protocol charges that will go to the Lido treasury.

The milestones for Refrain One’s vesting unlocks are notably formidable, together with a 1 yr cliff to “capture 2.5% of the staked SOL supply,” in addition to 1,000,000 tokens scheduled to start a one yr vesting schedule “when Lido for Solana manages to capture 25% of the staked SOL supply.” The proposal notes that Refrain One is at present the biggest SOL staker with $600 million in tokens.

A consultant for Lido instructed Cointelegraph that an growth may very well be a boon for the protocol’s revenue.

“For the Lido DAO, an expansion to liquid staking on Solana could bring with it a similar protocol fee set-up as we’re currently seeing with stETH/liquid staking on Ethereum, whereby a 10% fee on staking rewards is collected and split between node operators and the Lido DAO treasury (e.g. to grow an insurance fund),” they mentioned.

Additionally they famous that the door stays open to increasing to different Proof of Stake chains.

“Lido has a very simple mission – keep Ethereum staking simple, secure and decentralised – and we will look to extend this to other networks where possible,” they mentioned.

Per Lido’s web site, the services at present accounts for 256,964 ETH staked (value over $700 billion) throughout almost 5000 addresses incomes 7.1% APY, and is the third-largest staking pool at present reside per Nansen. Whereas estimates fluctuate, as soon as ETH 2.0 launches, the APY rewards are anticipated to enhance considerably.

Lido’s $LDO token has been on a tear as of late, rising 54% on a 24 hour foundation to $2.9 and 216% on the week — a run presumably fueled by one other governance proposal that will diversify a portion of the treasury to a bunch of notable enterprise capital funds, together with Delphi Digital, Digital Forex Group, Three Arrows Capital, and Alameda Analysis.

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