on the crypto
Until February 12, ETH holders have the opportunity to take advantage of the gains from the Lido governance token, a new decentralized finance (DeFi) app and protocol of staking.
An alternative to the staking of ETH
Since Tuesday, the amount of ETH staked on Lido has more than doubled, exceeding 60.000 ETH at press time. Lido offers people a new way to contribute to staking of ETH on the new Ethereum beacon chain, unlocking the value of their ETH (here the quotation in real time).
Additionally, Lido has a governance token (LDO) but is taking a unique approach to distribute it. Unlike Compound's COMP, which announced a durable yield farming plan, or Yearn, which brought everything down very quickly, Lido is distributing its governance token as its stakeholders see fit.
Of 1 billion tokens, 64% will be dedicated to the founders and other participants who supported Lido first. According to the project, another 5 million LDOs will be distributed until February 12. To access the airdrop, users simply need to contribute to Curve's stETH / ETH pool and point the tokens they receive. As an added benefit, investors will also earn Curve's CRV token. At press time, LDO is trading at around $ 1.
What is Lido?
Lido is a DAO that aims to offer users a way to use ETH cryptocurrency in the new version of Ethereum without really investing their liquidity. It is well known that once users have committed their cryptocurrency to it staking on Eth 2.0, it will most likely no longer be available until 2022.
Those who deposit ETH in Lido for the staking on Eth 2.0 they will receive stETH, which stands for staked-ETH. This is the part that will sound somewhat incredible to newcomers to the industry - this version of ETH is basically traded on par with regular ETH.
On the negative side, stETH is a token on Ethereum, which means it cannot be used to pay commissions. On the other hand, stETH earns a return from the staking and ETH no. So maybe the two things balance out. Backers don't get 100% returns; 10% is reserved for the DAO, which for now largely funds its cutback insurance. At present, just under 63.000 stETH have been minted, held in just under 1.500 addresses.
Who is doing it staking?
The stakers are chosen by the DAO. “To become an authorized operator for LIDO, you need to be approved by the LIDO community and voted by the token holders,” explained Rasmussen.
Current Lido members include Semantic Ventures, ParaFi Capital, Terra, KR1, P2P Capital, Bitscale Capital, Stakefish, Staking Facilities and Chorus One, Maker's Rune Christensen, Aave's Stani Kulechov, Yearn's Banteg, Deversifi's Will Harborne, Stake Capital's Julien Bouteloup, Jordan Fish and Synthetix's Kain Warwick. These and others collectively contributed $ 2 million to get the project off the ground.
