The native token of the liquid staking system Lido Finance, $LDO, has defied the current adverse trend in the cryptocurrency market by increasing by over 200% since the beginning of the year and 45% over the last 30 days.
Market data shows that $LDO is presently trading for around $3.06 per token, up from about $1.08 at the start of the year and from about $2.1 at the start of February.
The values of the majority of digital assets have fallen during the last several days. During the last week, the leading cryptocurrency, Bitcoin, lost more than 5% of its value, while ETH, BNB, XRP, and DOGE all dropped between 3% and 5%. In the same time frame, Cardano and Polygon had respective value declines of 8% and 12%, whilst LIDO saw a 10% increase.
A well-liked method of generating income on crypto assets while maintaining their liquidity is known as liquid staking. Liquid staking for digital assets tackles the core issue of locking tokens by enabling users to get a tokenized version of their deposited cash on a 1:1 basis. Staking entails locking one’s crypto assets for a predetermined duration in return for rewards.
A user of Lido receives one stETH token for staking one Ether ($ETH) token, which they can still spend on other protocols if they so want. In addition to layer-1 Proof-of-Stake blockchains like Polygon, Kusama, Solana, and Polkadot, Lido allows staking on Ethereum.
The protocol was created with decentralized protocol governance in mind, and it established a decentralized autonomous organization (DAO) to handle all major choices on how the protocol should be run.
Around 150,000 ETH, or over $240 million, were staked using Lido earlier this month, setting a record for the highest daily stake inflow. During the last several weeks, the procedure has steadily expanded.
The protocol just put forward Lido V2, its biggest improvement to far. Staking Router and Withdrawals are two significant enhancements made as part of the update that aim to make the platform more inclusive, transparent, and open while upholding its primary goals of making staking easy and Ethereum decentralized.
The validator environment will become more diverse thanks to Staking Router’s ability to provide on-ramps for additional Node Operators, while Withdrawals will allow holders of stETH to withdraw from Lido at a 1:1 ratio. The update is anticipated to boost network decentralization and make it possible to stake and unstake at whim, reiterating stETH’s position as Ethereum’s most useful and composable asset.