Lido starts with Solana (SOL) as the staking giant expands services

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on May 1, 2021
  • Several projects have adopted the Solana network, which has seen tremendous growth over the past year.
  • Lido Ecosystem Grant is leading the development funding to offer Lido’s services in an additional chain.
  • Lido says the enrolment can improve its goals of making staking easy for the Proof-of-stake network.

Terra and ETH 2.0 staking service Lido has announced its plans to enroll the Solana (SOL) blockchain as part of its goals to expand to other proof-of-stake chains. Lido says it wants to build a liquid staking protocol for the Solana blockchain.

Lido wants to make staking more decentralized

According to the announcement, it has the potential of rapid expansion of assets staked through Lido. This can improve Lido’s goals of making staking decentralized and easy for the Proof-of-stake network. Additionally, it can generate massive recurring revenue to the Lido DAO, which will deliver value to the LDO holders.

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Solana blockchain has seen immense adoption and growth over the past year. And with an exciting ecosystem brewing around Serum and other DeFi projects, the platform may see more significant growth in the future.

Solana has been the go-to platform for some projects such as Pyth Network 3, Oxygen 2, and Raydium 1.  Presently, there are more than $14 billion staked on Solana, making it one of the 5 biggest proof-of-stake networks 13 in terms of staked value.

Significance of liquid staking on Solana

Staked liquid token has massive potential for the ecosystem since stSOL can be utilized as collateral in DeFi applications on Solana and other platforms.

Development funding to offer Lido’s services in an additional chain is coming from the Lido Ecosystem Grants organization. The program was initiated in March by Lido’s governance.

Chorus One requested 2 million vested tokens as a compensation package. It also sought a revenue-sharing formula that would entitle Chorus One to 20% revenue from protocol fees.

However, a liquid staking expansion on Solana could be generating a protocol fee set-up similar to the stETH/liquid staking on Ethereum. In such a setup, the Lido DAO treasury and mode operators split 10% fee on staking rewards. According to the stakeholders, the fee is set aside to grow an insurance fund.

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