Lido Monthly Report: June 2024

in Reports by Lido

Welcome to the June edition of the Lido Monthly Report, a comprehensive source for insights into all of the latest developments.

 

This report reviews another month of noteworthy metrics, new collaborations, and ongoing developments that highlight the overall performance and progress of Lido.

 

For previous editions of the Lido Monthly Report, check out 'Reports'.

 

TLDR:

  • Lido recorded a net inflow of 229,918 staked ETH in June.
  • More than 14,300 new addresses holding stETH were recorded, putting the Lido middleware on track to reach a significant milestone of 500,000 in the coming weeks.
  • Notable successful Snapshot votes included approving Lido Alliance applications and expanding Simple DVT Module
  • In collaboration with Symbiotic and strategy curators including Steakhouse, P2P, Re7 Labs, and MEV Capital, four restaking vaults for stETH holders were launched on Mellow Protocol.
  • The Early Adoption phase for the Community Staking Module has been introduced.
  • The Lido website has been redesigned with a fresh new look.
  • Blockworks Research published an article discussing stETH and its importance for the future of Ethereum's decentralization.

 

Lido Performance

In this section, you will find key metrics that offer valuable insights into the overall performance of the Lido middleware over the month of June.

 

 

  • Despite a decrease in Total Value Locked (TVL) caused by ETH's negative price performance over the past month, the Lido middleware saw a net inflow of 229,918 staked ETH.
  • Throughout June, a total of 6,847 new ETH stakers chose to utilise Lido for the first time.
  • LP incentives saw a minimal increase of $3,901 across Ethereum and Optimism.

 

stETH Performance

In this section, you will find key metrics that offer valuable insights into the overall performance of the Lido's Ethereum staking token over the month of June.

 

 

  • It is important to note that these metrics also include wstETH - the wrapped, non-rebasing version of stETH.
  • More than 14,300 new addresses holding stETH were recorded, putting the Lido middleware on track to reach the significant milestone of 500,000 in the coming weeks.
  • stETH in DeFi applications, like lending protocols and decentralized exchanges (DEXs), saw a net increase of over 62,700.

 

Governance

In this section, notable proposals from the Research Forum and their progress through the voting processes on Snapshot and Aragon are presented.

Despite several recently successful Snapshot votes, none of them reached the Aragon stage during the month of June. As per the governance voting schedule, the next Aragon Omnibus vote is scheduled for the first week of July.

For a better understanding of the Lido DAO governance process, please click here.

 

Snapshot

Among the various Research Forum proposals considered and deliberated upon during the past month, four proposals were subjected to Snapshot votes:

 

  1. Lido Alliance Application - Mellow: details

This proposal asked to onboard the Mellow Protocol into the Lido Alliance, enhancing stETH liquidity and promoting decentralized validation through Mellow's restaking ecosystem. Mellow seeks to integrate its Liquid Restaking Tokens (LRTs) with stETH, benefiting from Lido’s endorsement, bug bounty support, and a shared commitment to decentralization and security.

Proposal Outcome: Successful ✅

 

2.  Lido Alliance Application - Drop: details

This proposal asked to onboard the Drop Protocol into the Lido Alliance, leveraging its cross-chain liquid staking capabilities to enhance stETH integration and support decentralized validation across the Interchain. Drop seeks to benefit from Lido’s endorsement, liquidity support, and extensive network to promote wstETH adoption and ensure adherence to high security standards.

Proposal Outcome: Successful ✅

 

‌3.  Expanding the Simple DVT Module: details

This proposal sought DAO approval to expand the Simple Distributed Validator Technology (DVT) Module by increasing the staking share limit to 4% and creating Super Simple DVT Clusters with higher validator capacity. This expansion aims to enhance the resilience, security, and decentralization of Lido's validator set, while making it economically viable for more participants to run validators.

Proposal Outcome: Successful ✅

 

‌‌4. LIP-23 - Negative Rebase Sanity Check: details

This proposal aimed to enhance the Lido protocol's security by tightening the sanity checks for negative rebase events to protect against potential malicious manipulations. It suggested replacing the current 5% daily decrease limit with a new check that limits decreases to 3.4% over an 18-day window and includes provisions for a second opinion in extreme cases.

Proposal Outcome: Successful ✅

 

Blogs

  • This blog announced Lido's collaboration with Mellow Finance to offer stETH holders access to advanced DeFi vaults, including restaking opportunities, as part of the DAO's efforts to enhance the utility and liquidity of staked ETH. These vaults, supported by Mellow Finance's innovative Liquid Restaking Token (LRT) model, provide stETH holders with various strategies to maximize their rewards while maintaining a strong security framework.

 

  • This blog introduced the Early Adoption phase for the Lido Community Staking Module (CSM), providing selected community stakers early access to operate validators with reduced bond requirements before the module is available to everyone. Eligibility for this phase is based on various criteria, including performance in testnets and engagement in community activities, with opportunities still open for others to qualify through upcoming events and activities.

 

Collaborations

In this section, you will find all the collaborations that have been established in the past month, as leading companies and protocols integrated with the Lido middleware, further expanding the reach and impact of its liquid staking tokens.

 

Integrations

  • In collaboration with Symbiotic and strategy curators including Steakhouse, P2P, Re7 Labs, and MEV Capital, four restaking vaults for stETH holders were launched on Mellow Protocol.
  • Maverick Protocol has announced its upcoming V2 ecosystem integration with wstETH, which is set to come with additional incentives and multi-chain composability.
  • Holyheld's Web3 debit card now supports direct cashouts of stETH from on-chain wallets.
  • HAI, the CDP protocol enabling users to borrow against LSTs and mint an overcollateralized, decentralized stablecoin, now allows deposits of wstETH for loans with a minimal 2% stability fee.

 

Additional

  • The Lido website has been redesigned with a fresh new look!

 

  • The 18th Lido Node Operator Community event featured a diverse lineup of speakers and a packed agenda.

 

  • Blockworks Research published an article discussing stETH and its importance for the future of Ethereum's decentralization.

 

  • Lido DAO contributors released a comprehensive monthly update on the latest developments involving Lido node operators and validators, covering activities ranging from testnet participation to advancements in the Community Staking Module.

 

Stay Connected

To conclude, another chapter is brought to a close in the Lido Monthly Report.  

 

To remain continuously updated, be sure to subscribe to receive all upcoming reports. Furthermore, to stay connected with the growing community, follow Lido DAO through the various channels provided below.

 

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