LDO Airdrop
Lido DAO’s proposal to retroactively airdrop LDO tokens has passed.
The proposal reached the minimum 5% supply participation required to pass, alongside >50% approval.
The exact details of the airdrop are still under discussion on the forum, with some debate around whether both stakers and liquidity providers should receive the tokens.
The goal is to be as maximally inclusive as possible.
What we do know is that 0.5% LDO will be dropped to stETH users up to block 11543333.
stETH
Lido DAO launched recently, providing liquid staked ETH. Currently to run a validator users have to lock up their ETH on the beacon chain which may be inaccessible for years. There is a 32 ETH minimum requirement which is unattainable for many, and running a validator requires both hardware, stable internet, and some technical proficiency. Several validators have already been slashed due to making mistakes.
Lido DAO solves all these problems with stETH, a tradable ERC-20 backed by real staked ETH. stETH accrues in value mirroring the returns of the underlying ETH. It can also be used as an asset across DeFi to generate additional yield.
The magic of this system is that it is non-custodial, with validators interfacing with the staking contract and not directly with the beacon chain.
LDO
Lido DAO is a community managing the system through an Aragon decentralised autonomous organisation.
The DAO is entrusted with defining the initial parameters and setting up nodes. LDO token holders participate in this governance process through Aragon.
There’s a 10% fee on the rewards, with 50% going to the DAO and 50% to node operators. This an be used as insurance to protect users in the event of a slashing incident.
Conclusion
Lido DAO is providing a valuable service, circumventing the barriers to participation in Ethereum’s proof-of-stake network without reliance on a centralised exchange.
stETH opens the door for anyone to participate, as well as introducing a liquid staked ETH asset to be used across DeFi. Of course it does introduce some additional risks, so as always do your own research.
The DAO is already seeing active participation despite launching just recently, and the project looks like it has a promising future.
Join the Lido DAO Discord.
Decentralise is sponsored by PieDAO, community governed tokenised ETF products. PieVaults unlock multi-faceted yield strategies and I’d love to see stETH proposed for inclusion in an upcoming design.