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May 14, 2021: Lido and Think of London 🇬🇧💦
curve.substack.com

May 14, 2021: Lido and Think of London 🇬🇧💦

Lido's Liquid Staking $stETH Leads the ETH2 transition.

crv.mktcap.eth
May 14, 2021
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May 14, 2021: Lido and Think of London 🇬🇧💦
curve.substack.com

With just a few months before Ethereum’s London hard fork integrates EIP-1559, Lido Finance is becoming a critical player in the multi-step transition to ETH2. The liquid staking protocol is currently the 3rd largest ETH depositor address.

Twitter avatar for @LidoFinanceLido @LidoFinance
Lido has also established itself as the 3rd largest ETH depositor address with a 7.32% share of all staked ETH.
Image

May 8th 2021

5 Retweets55 Likes

The liquid staking mechanism provides a great “have your stake and skeet it too” opportunity for apes who want exposure to the ETH 2.0 transition but don’t want to miss out on the trendiest new DeFi offerings in the interim. Lido’s $stETH token is extremely liquid and accepted across the DeFi ecosystem.

As a result Lido’s enjoyed a meteoric rise from nothing to over $2 billion over the course of six months, with major growth coming from both the Ethereum and the Terra universes.

Twitter avatar for @0xngmi0xngmi @0xngmi
Now we have the full TVL history of @LidoFinance along with the token breakdown
Image

Lido @LidoFinance

More than $2b in TVL 🏝️ https://t.co/LcBehe6JWi https://t.co/MB46MSjPXp

May 13th 2021

3 Retweets53 Likes
Twitter avatar for @LidoFinanceLido @LidoFinance
More than $2b in TVL 🏝️
defillama.com/protocol/lido
Image

May 8th 2021

40 Retweets257 Likes

Yet these growth charts don’t tell the full story of how central $stETH and $LDO have become to ETH’s transition story. Many users cannot afford to stake the 32 ETH minimum, meaning they need to turn to staking pools. These staking pools combined serve over 10K depositors and account for about 10% of the total amount staked. Among this market, Lido is by far the most popular choice.

Twitter avatar for @eliasimosElias Simos @eliasimos
5/ @LidoFinance is leading the pack with 73% market share, split among ~4.5k unique depositors that contributed 76 ETH each on avg. @ankr's Stkr is a distant second with ~12% market share.
Image

May 14th 2021

3 Retweets10 Likes
Twitter avatar for @eliasimosElias Simos @eliasimos
6/ When looking at the time series, it's evident that most of the growth in the sector driven by @LidoFinance . All other solutions have attracted some ETH at launch, but have failed to sustain growth rates as high.
Image

May 14th 2021

8 Likes

Of course, much of this growth ties directly to their partnership with Curve. 283K stETH in total sit in Curve’s stETH pool, worth nearly $1B. Remember that in total Lido has $2B locked.

Curve has three ETH denominated pools, and among them $stETH is by far the largest, with over $2.2B in volume locked. Part of this is surely the $LDO rewards, so fortunately for the Curve community the Lido team just refilled the rewards gauge for another month with an additional 3.75M $LDO.

Twitter avatar for @LidoFinanceLido @LidoFinance
The proposal to allocate 3,750,000 LDO (0.375%) to incentivise LPs in the @CurveFinance stETH/ETH pool between May 14th-June 14th has passed. Visit
curve.fi/steth to get started 🏝️Curve.fiCurve is an exchange liquidity pool on Ethereum designed for: extremely efficient stablecoin trading, low risk, supplemental fee income for liquidity providers, without an opportunity cost.curve.fi

May 14th 2021

9 Retweets61 Likes

A careful analysis of the Curve $stETH dynamics is not as straightforward as one might hope though. A thoughtful thread by @MonetSupply examines how $stETH is holding its peg against incentives and concludes Curve users may be taking up to a 50% haircut on this pool as opposed to holding stETH outright.

Twitter avatar for @MonetSupplymonetsupply.eth @MonetSupply
quick thread on risk and staking derivatives, with a focus on @LidoFinance's $stETH stETH promises to unlock liquidity from ETH staking for defi use cases, but involves potentially under-appreciated risks (disclosure: I own $LDO tokens under vesting)

May 13th 2021

19 Retweets97 Likes
Twitter avatar for @MonetSupplymonetsupply.eth @MonetSupply
stETH curve LPs face nearly equivalent risk as holding stETH, while only earning 50% of the staking rewards currently this is compensated via CRV and LDO rewards, but if rewards rates drop below 50% of the staking rewards APY LP liquidity could decline significantly

May 13th 2021

9 Likes

At any rate, and exposure to $LDO has been great for recipients. $LDO has been screaming this past month, up almost 5x.

This price movement is surely due to several complex factors. The primary utility of the $LDO token is governance, so it’s entirely possible users are simply hoarding $LDO in anticipation of a contentious vote on an important rebrand.

Twitter avatar for @Cryptopathicpath.eth 🛡️ @Cryptopathic
@CryptoCobain fido finance

May 12th 2021

7 Retweets234 Likes
Twitter avatar for @CryptoCobain∞ CO฿IE @CryptoCobain
@Cryptopathic That’s much too smart I’ve submit an $ldo governance proposal to change the name to simply “little dog”

May 12th 2021

2 Retweets80 Likes

Another factor may be excitement from a recent funding round they raised at a price equivalent of about 25K ETH. Then again, that’s sort of just a rounding error for the multibillion dollar protocol.

Twitter avatar for @TheBlock__The Block @TheBlock__
Ethereum 2.0 staking project Lido raises $73 million in new funding led by Paradigm
Eth2 staking project Lido raises $73 million in new funding led by ParadigmEthereum 2.0 staking protocol Lido Finance has raised $73 million in fresh funding led by Paradigm.theblockcrypto.com

May 5th 2021

80 Retweets432 Likes

At any rate, the Curve $stETH pool is seeing good action lately. It’s the largest ETH-denominated Curve pool, with over twice the volume locked of the popular $sETH pool. The Curve community recently approved an adjustment to the stETH pool’s ramp to further increase efficiency.

Twitter avatar for @CurveFinanceCurve Finance @CurveFinance
The vote to increase efficiency of stETH liquidity pool by factor of 5 (over 1 week, in 5000 steps) got enacted

May 13th 2021

8 Retweets97 Likes

Additionally, the team at Enzyme Finance added the $stETH pool to their protocol, opening up interesting opportunities for the savvy.

Twitter avatar for @enzymefinanceEnzyme Finance @enzymefinance
A new @CurveFinance pool is live on Enzyme! Let's give a big welcome to the @LidoFinance Curve👏🏾 Meta-Yield farming options are increasing on Enzyme daily. @UnslashedF will leverage this to bring capital efficiency to DeFi insurance - "a first"!
link.medium.com/GrlWjaTQcgb

May 12th 2021

27 Retweets117 Likes
Twitter avatar for @CurveFinanceCurve Finance @CurveFinance
Some serious composability play here

Enzyme Finance @enzymefinance

A new @CurveFinance pool is live on Enzyme! Let's give a big welcome to the @LidoFinance Curve👏🏾 Meta-Yield farming options are increasing on Enzyme daily. @UnslashedF will leverage this to bring capital efficiency to DeFi insurance - "a first"! https://t.co/tK8Iq33Enn

May 12th 2021

19 Retweets140 Likes

ETH-heads are beyond eager for the transition to the next generation of the protocol. Thanks to the foresight and hard work of the team at Lido, the transition is shaping up to be liquid pleasure.


For more info, check our live market data at https://curvemarketcap.com/ or our subscribe to our daily newsletter at https://curve.substack.com/. Nothing in our newsletter can be construed as financial advice. Author is a $CRV maximalist, and staked in both $stETH and $sETH pools.

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May 14, 2021: Lido and Think of London 🇬🇧💦
curve.substack.com
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