- Lido gave the go-ahead for the implementation of two separate proposals.
- The project keeps dominating the liquid staking sector.
Lido Finance [LDO] approved the proposal to change its reward-share system while encouraging participants to take part in staking on the protocol. According to the voting results, 99.7% were in support while 0.3% were against it.
Read Lido Finance’s [LDO] Price Prediction 2023-2024
Called “A Sustainable Approach to Staked Ether [stETH] growth,” Lido has centered the proposal around offering rewards for stETH participants who used Lido.
Rewards, stakers, and the chances of…
And this would be gotten from the Decentralized Autonomous Organization’s (DAO) 5% share. However, the project noted that the approval would not be immediate. Instead, it will pass through three phases including onboarding, reward share, and offboarding. Lido noted,
“The program is designed to have limited rewards pools, gradual payouts, a fixed duration that the DAO shares with participants, and filtering for program abuse.”
Furthermore, Lido pointed out that rewards would not be evenly distributed. Instead, it would depend on the ETH share that participants staked on the protocol. The now-approved proposal mentioned,
“The amount of rewards-share from the DAO is tier-based, determined by the total cumulative ETH staked by the participant and/or by users via participants’ products and services. A participant’s starting tier will be determined by the amount of ETH originating from a participant’s products and services prior to their enrollment in the program.”
But there were other notable highlights including terms for disqualification and dedication. Those who have unstaked, or sold stETH on centralized and decentralized exchanges do not qualify.
Also, liquidity providers, whose swap rate exceeded 1% and participated in Aave [AAVE] and Compound Finance [COMP] do not fit in.
Lido still leads amid support
Besides voting with respect to stETH, the Lido community also approved the proposal to keep contributing to Ethereum’s [ETH] accessibility and decentralization. As expected, 100% of the voting cohort supported the motion.
Is your portfolio green? Check the Lido Finance Profit Calculator
At press time, Lido Finance still held on to its dominance in the liquid staking sector. According to Dune Analytics, the project had a 76.4% lead over all other centralized and decentralized competitors. This suggested that participants still trusted Lido more than any other projects in that regard.
Source: Dune Analytics
When it comes to the Total Value Locked (TVL), DefiLlama showed that Lido had crossed the $14 billion mark. With a 30-day 5.85% increase, the TVL hike means that Lido experienced more smart contract deposits within the period.
Source: DefiLlama
