Introduction
Lido Finance, one of the largest ETH 2.0 and Terra staking providers, is now eyeing expansion to other proof-of-stake (PoS) chains—starting with Solana. A new proposal by infrastructure provider Chorus One outlines plans to bring Lido's liquid staking services to the high-performance Layer 1 blockchain.
Proposal Highlights
Chorus One's Strategic Plan
- Goal: Capture 25% of all staked SOL through Lido's liquid staking solution
- Token: Create stSOL (similar to Ethereum's stETH), representing staked SOL with rewards
- Funding: Supported by Lido Ecosystem Grants Organization (LEGO) launched in March 2022
Compensation Structure
| Component | Details |
|---|---|
| LDO Tokens | 2M vested tokens |
| Revenue Share | 20% of protocol fees (10% fee on staking rewards) |
| Milestones | 1-year timeline to capture 2.5% supply, then 1M token/year vesting at 25% market share |
Why Solana?
Market Potential:
- Chorus One currently holds $600M in staked SOL (largest operator)
- Solana's high throughput makes it attractive for DeFi applications
Revenue Benefits:
- Projected fees mirror Lido's Ethereum model (7.1% current ETH APY)
- Funds would support DAO treasury and insurance funds
Strategic Expansion:
- Maintains Lido's "simple, secure, decentralized" ethos
- Opens door for future PoS chain integrations
Current Lido Performance
- ETH Staked: 256,964 ETH ($7B+) across 5,000 addresses
- Ranking: 3rd largest staking pool
- APY: 7.1% (expected to rise post-ETH 2.0 launch)
LDO Token Surge
- Recent Growth: 54% (24hr), 216% (weekly)
Catalysts:
- Solana expansion proposal
- Potential institutional investments from Delphi Digital, DCG, Three Arrows Capital, and Alameda Research
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FAQ Section
Q: How does stSOL differ from stETH?
A: It follows the same liquid staking model but represents staked SOL instead of ETH, enabling yield opportunities on Solana-based DeFi platforms.
Q: What risks exist in this expansion?
A: Solana's newer tech stack requires rigorous security audits. Chorus One's experience as a top SOL validator mitigates operational risks.
Q: When might stSOL launch?
A: No official timeline, but Chorus One proposes a 12-month window to achieve initial milestones.
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Conclusion
This strategic move positions Lido as a cross-chain staking powerhouse while providing Solana users access to proven liquid staking infrastructure. The proposal's success could redefine PoS participation across multiple ecosystems.