In the past 24 hours, the Lido protocol has emerged as the top protocol in the decentralized finance (DeFi) ecosystem by total value locked (TVL) after beating out MakerDAO (MKR). Thus, almost 6 billion dollars of Ethers (ETH) are currently staked on the liquid staking platform.
Lido, now the first DeFi protocol
The Decentralized Finance Protocol (DeFi) Lido just overtook MakerDAO (MKR) in terms of total value locked (TVL), effectively becoming the first DeFi protocol in the ecosystem on this metric. Thus, Lido now has more than 15% of all total value locked within the DeFi ecosystem.
Top 5 DeFi protocols across all blockchains
Lido is what is known as a liquid staking protocol, a method that allows users to deposit and immobilize a cryptocurrency in exchange for its equivalent to be able to take advantage of DeFi. For example, Lido is commonly used for deposit ether (ETH) in exchange for stETH (for Lido Staked ETH).
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This is a relatively democratized technique within decentralized finance which makes it possible to maximize the speculative aspect of its assets, and which allows de facto to vary their exposures.
So, according to Dune Analytics, Lido is by far the leading Ether staking protocolin front of the main exchanges such as Coinbase, Kraken or Binance:
Depositarys on the Beacon Chain from 2020 to present
Although Lido supports different networks, including Solana (SOL), Polygon (MATIC), Polkadot (DOT) or Kusama (KSM), this protocol is very mainly used for Ethereum staking, a feature that has been particularly popular since the transition from blockchain in Proof-of-Stake (PoS). Proof of this success, at the time of writing these lines, around $5.9 billion worth of ETH is staking on Lido.
Following this progression, the price of the Lido utility token, the LDO, increased by 15.7% over 24 hours. The latter is currently trading at $1.16, still much lower than when it reached its highest price (ATH) of $7.30 in August 2021.
👉 Read our guide to understand all about the importance of TVL in DeFi
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Sources: DefiLlama, Dune
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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