Lido Labs are reallocating resources. Reduce the focus on staking in favor of new products that would benefit from our skillset and trust built over years of experience.
Huge staking inflows from Bitminer et co and users’ flight-to-safety instinct kicking in after Kelp incident mean that the December targets we use for goal-setting and planning are no longer achievable.
Total ETH staked grew faster than expected, mostly via Grayscale and BitMine.
APR Maxi segment contracted from 16% to 10% after the KelpDAO incident.
We planned for $2,712. ETH has been at $2,120 for months.
If we can't achieve our staking goals, we reduce spending and redirect where there's still a real case.
In the meantime, Lido contributors are exploring new products to build on Lido's security expertise and brand. With all the incidents this year, security got repriced, and Lido security is already valued highly by the market. E.g. on
@sparkdotfi, high-leverage ETH borrowing is restricted to wstETH, not fragmented LRT collateral. Third parties are voting with their product decisions.
I believe this is a long-term gain in exchange for the short-term pain of market contraction.
More ground covered in yesterday's Tokenholder Update call:
x.com/LidoFinance/status/205…