Lido’s Liquid Staking Protocol Dominates with $9.3B in Locked Ethereum, Boosted by Tron Founder’s Deposits – Bitcoin News
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Lido, an Ethereum trustless staking protocol, has emerged as the dominant liquid staking protocol in the crypto world with $9.3 billion in locked Ethereum. The growth of Lido can be attributed to the founder of Tron, Justin Sun, who deposited $600 million worth of Ethereum into the protocol.
Lido was established in late 2020 and is a decentralized staking protocol that allows investors to earn staking rewards on their Ethereum holdings without compromising the liquidity of their assets. The protocol is designed to create a seamless connection between Ethereum 2.0 staking and Ethereum 1.0 liquidity.
Investors can simply deposit their Ethereum holdings into Lido, and then receive staked Ethereum tokens (stETH) in return. StETH is a liquid representation of staked Ethereum, which can be traded, withdrawn, or used as collateral for any dApps or DeFi protocols that accept Ethereum. In addition, stakers can earn staking rewards in the form of ETH and LDO (Lido’s governance token).
Lido has created a new market niche for Ethereum investors by solving the liquidity issue that arises when investors stake their Ethereum in the Ethereum 2.0 network. Ethereum 2.0 staking requires investors to lock their Ethereum holdings for a period of time, which makes it difficult for them to access their assets during that period.
Lido’s unique liquid staking protocol has garnered significant attention from investors and prominent figures in the crypto world. Justin Sun, the founder of Tron, recently deposited $600 million worth of Ethereum into Lido, which boosted the protocol’s total locked value to $9.3 billion. This move by Justin Sun shows the growing demand for liquid staking protocols and their potential to attract institutional investors.
In addition to Justin Sun’s deposit, other investors have also adopted Lido’s platform. Leading DeFi protocols like Curve Finance, Aave, and 1inch.exchange have integrated Lido’s liquid staking protocol into their platforms.
Lido’s success has not gone unnoticed by the crypto world, and it is now regarded as the leading liquid staking protocol. The protocol’s innovative solution to the liquidity issue has set a new standard for the staking industry, and we can expect to see more liquid staking protocols emerge in the near future.
In conclusion, Lido’s success has been propelled by its unique liquid staking protocol that allows investors to earn staking rewards on their Ethereum holdings without compromising the liquidity of their assets. The growing demand for liquid staking protocols, as evidenced by Justin Sun’s deposit, highlights the potential of this market niche to attract institutional investors. And with the integration of Lido’s protocol into leading DeFi protocols, we can expect to see the protocol’s continued growth in the crypto world.
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