Lido Referral Program - 2nd Period Review
The second period of Lido's referral program showed great results which we are glad to share with the community.
The referral program was launched on July 19th, 2021 (see blog post) and the second payout week started on the 16th of August. Referral rewards for this period are now available to be claimed via DeversiFi.
- Referral program terms & conditions contain all the main info about the referral program (rules, glossary, flow explanations, links to guides, etc.).
- Referral program periods schedule shows rewards calculation and payout weeks on the calendar.
- Referral program public report shows all the approved rewards for each period.
- The staked amount approved - 55,822.50 ETH
- Rewards paid out - 837,337.51 LDO
240% growth from 1st period!
- Rewards denied (abuse cases) - 391,047 LDO
Referral program overall
- The staked amount approved - 79,001.10 ETH
- Rewards paid out - 1,185,016.51 LDO
- Unique referrals - 290 addresses
- Unique referees - 3,370 addresses
Integration with Ledger brought 14,416.3745 ETH, which were rewarded with 216,245.6175 LDO.
For the first two weeks of the referral program, there were two types of staking that Lido did not include in the referral reward:
- Cycle staking;
- Removing liquidity from staking pool;
In the future, Lido reserves the right to exclude other types of staking attempts that we believe abuse the referral system.
1. Cycle staking
As was mentioned initially - cycle staking will be filtered out. Cycle staking is when a user sends ETH through Lido using a referral link, only to sell their stETH later for more ETH in order to repeat the whole process again. Staked ETH can not be used to get rewards again and again, and again...
Here are some examples of such transactions:
2. Removing liquidity from staking pool
The stETH/ETH pool on Curve is the biggest pool in DeFi. Withdrawing ETH from the Curve pool is not going to be rewarded (as it's not helping to grow TVL and can possibly hurt the peg).
Such cases of removing liquidity from stETH/ETH pools are not going to be rewarded.
Here is one case that was reproduced multiple times:
Initially 500 ETH was removed from the Curve pool - the reason why it's not rewarded. It was then sequentially transferred and split between multiple addresses, each address staking its respective amount of Ether.
This scenario been played multiple times with different addresses:
- Referral: 0x7be31c2398680102e4140ccc057445c86c70b433
- Referral: 0x3df770e09313c229f7b0a18ab76b38f925a3a939
- Referral: 0x7b785ca173d136a9f5bf8611a799b881a28d1499
- Referral: 0x8def2ab08c95d8e0b1c8c7708d0e0979ceb8c7ff
- Referral: 0xde2d1206509cbb89e8490752de3eb949992e0d46
Here is the log of one implementation of this scenario:
- 0xbbb7edc2a8511fc8815f9e2c42160b33b8e32fd4 removed 500 ETH from Curve pool, -> transfer to 0x4158a63c5042f7935364ec6317be686b85cf42ca, 0x4158a63c5042f7935364ec6317be686b85cf42ca transfer to 0x887b15de0fe200bcaa5ad402944f2325cd0a3ef0, -> 0x887b15de0fe200bcaa5ad402944f2325cd0a3ef0 staked 250 ETH and transfer to 0x06b3ee4eb3f61d03f918e2942979e8333d5b52e9, who staked 187 ETH The same schema for staking 120 ETH by 0x4158a63c5042f7935364ec6317be686b85cf42ca and 130 ETH by 0x731cf08ca9442b1e59080c41002f15ceb32fd8eb. Before performing the stake, all addresses swapped ETH for USDC and USDT, then deposited into dYdX - L2 Perpetual Smart Contract - and swapped back for ETH.
Top 10 referrals of 2nd period
Top 10 referrals overall (from both periods)
Overall, the Lido referral program shows great performance with 79,001.10 ETH staked by 3,370 unique referee addresses. The second period of the referral program showed a significant 240% growth in staked amounts compared to the first period. The integration with Ledger brought 14,416.3745 ETH, and rewarded referrals with 216,245.6175 LDO. This event proves how mutually profitable wallet integrations are in the Lido referral program, allowing users to easily stake their Ether from their own hardware wallet without further complications and without compromise. The Lido referral program will continue to operate and will be focusing on increasing other wallet integrations to accompany more users into the Lido ecosystem.