What is Lido Staked SOL?

'Lido for Solana' serves as a governance-driven liquid staking protocol on the Solana blockchain. Those who choose to stake their SOL tokens using Lido will receive an on-chain representation of their staked SOL positions within Lido's validators, referred to as stSOL. This innovative approach empowers Solana token holders with the ability to access liquidity against their staked assets, which can be traded or employed as collateral within DeFi products.

stSOL stands as the tokenized embodiment of staked SOL assets native to the Lido platform. The foundation of Lido for Solana is supported by a consortium of leading staking providers within the industry. This initiative facilitates the liquidity of staked SOL, enabling participation with varying quantities of SOL tokens. The process is straightforward: a SOL token holder connects their wallet, deposits their tokens into the Lido program, and promptly receives stSOL tokens denoting a portion of the total asset pool. Meanwhile, Lido's program delegates the SOL tokens to validators controlled by Lido across the Solana network.

As these delegated holdings amass rewards in relation to the designated stake, the collective amount of SOL under Lido's management expands. Consequently, this drives up the value of stSOL tokens. These tokens can be utilized much like SOL, enabling holders to not only accrue SOL staking rewards but also benefit from rewards offered through integrated platforms like Saber and Raydium.

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Recent Video Interiview

Main points of the interview:

• Lido's role within the DAO and their project on community staking modules.
• Lido's position as a top staking provider and its fully decentralized nature.
• Highlights Lido's commitment to reliability, security, and decentralization.
• Lido's mission and future plans, focusing on decentralization and adapting to changes.

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Background Information on Lido

Lido emerged as a Decentralized Autonomous Organization (DAO) and a Liquid Staking protocol, originating prior to Ethereum's noteworthy "Merge" event when staking was initially introduced to the Ethereum ecosystem.

Addressing the challenge of Ethereum's 32 Ether staking threshold, Lido not only overcame this requirement but also introduced its Liquid Staking innovation. This innovation empowers users to unlock the value of their staked tokens, retaining liquidity. Through this approach, Lido users can maintain liquidity for their staked tokens by utilizing a surrogate stToken, enabling them to generate additional yield via engagement in the Decentralized Finance (DeFi) markets.

The trajectory of the Lido project is determined by its community, facilitated by decentralized governance employing the Lido DAO's LDO token. While Lido's focus lies predominantly on Ethereum, it has expanded its support to encompass various other Proof of Stake (PoS) blockchains. Lido's core mission revolves around simplifying and decentralizing the staking process, ensuring that staking is accessible to a wide array of individuals.

Lido Team Background and Partners

Lido was established in 2020 by Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish. The company's headquarters are located in Poland. Currently, it is a contributor-driven DAO with no centralised team.

Lido on Solana partners with many node operators, such as Blockdaemon, Block Logic, Forbole, ChainLayer, RockX, Figment, Chorus, Stakefish, P2P Validator, DSRV, Everstake, Staking Fund, Chainode Tech...

Lido Project Development

In July 2023, the Total Value Locked (TVL) exceeded $15 billion, a milestone not reached since May 2022. Nonetheless, the recent drop in the value of ETH led to a fall beneath this significant threshold. Despite the earlier activation of ETH withdrawals, the protocol has consistently observed substantial monthly net inflows of ETH deposits. This continuous expansion positions the protocol favorably to surpass 8 million staked ETH in the upcoming month.

The protocol's exceptional adoption becomes evident as more than 10,000 new stakers embraced it for the first time. This surge signifies a remarkable increase of over 50% compared to june 2023, underscoring the protocol's impressive growth and strong market demand. Incentives for July encompassed around 40 wstETH, directed towards Optimism and stablecoin liquidity venues.

Lido Staked SOL Price Analysis

As of November 25 2024 Lido Staked SOL has a marketcap of $32M. This is {{percentagefromath}} from its all time high of $318.78. In terms of its tokenomics, there's a total supply of 106K with 100% currently outstanding. Keep in mind Lido Staked SOL has a fully diluted value of $32M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.