Staking giant Lido seeks to expand its services to Solana

One of the largest ETH 2.0 and Terra pledge services is now seeking to expand to other proof-of-stake chains, starting with the new layer 1, Solana.

In a proposal at the Lido governance seminar, the crypto infrastructure provider Chorus One proposed a plan to build “a liquid staking token (currently: stSOL), staking to obtain rewards, and representing Lido verifiers “Pledge on Solana” is similar to Lido’s current interest-bearing stETH token.

The development funding to bring Lido’s services to another chain will come from the Lido Ecosystem Grant Organization, a governance project launched by Lido in March. The compensation package required by Chorus One includes 2 million acquired LDO tokens and a revenue sharing model that will give Chorus One the right to receive 20% of the revenue from the agreement fee, which will go to Lido’s Ministry of Finance.

Chorus One’s redemption and unlocking milestones are obviously ambitious, including a one-year “period” to “obtain 2.5% of pledged SOL supply” and “when Lido successfully obtains 25% of pledged SOL supply for Solana”, the plan begins. 1 million tokens redemption plan for 1 year. This proposal states that Chorus One is currently the largest SOL pledger, with $600 million in tokens.

A representative of Lido told Cointelegraph that the expansion may be good for the revenue of the agreement.

They said: “For Lido DAO, the liquid pledge extended to Solana may bring a protocol fee similar to the stETH/liquid pledge we currently see on Ethereum, that is, 10% of the pledge reward is charged. , And are distributed between the node operator and the Lido DAO Ministry of Finance (for example, for the development of insurance funds).”

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They also pointed out that the door to extend to other proof-of-stake chains is still open.

They said: “There is a very simple task-to keep Ethereum simple, secure and decentralized-we will seek to extend this to other possible networks”.

According to Lido’s website, the pledge service currently holds 256,964 pledged ETH (worth more than US$700 billion) in nearly 5,000 addresses, with an annual yield of 7.1%, and is currently the third largest pledge pool. Although it is estimated that will change, once ETH 2.0 is launched, APY rewards are expected to increase significantly.

Lido’s LDO tokens have been on the rise recently, rising 54% within 24 hours to $2.9, and this week it’s up 216%-this may be driven by another governance proposal that will supply a portion of LDO tokens The volume was sold to some well-known venture capital funds, including Delphi Digital, Digital Currency Group, Three Arrows Capital and Alameda Research.

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.