Chorus one plans to help staking giant Lido get 25% of all staked SOL. This comes in a timely way as Lido, one of the largest ETH 2.0 and Terra staking service, plans to expand to other proof-of-stake chains. It plans to start with upstart layer 1 Solana.
Chorus One gave is the proposal to Lido’s governance with its plan to create a liquid staking token(stSOL) that will not only accumulate staking rewards but also represent staking positions on Solana with Lido validators. The new token will be similar to the current Lido’s stETH token that is interest accruing.
What’s in for Chorus One
The whole development will be financed by Lido Ecosystem Grants Organization, a program created by Lido’s governance in March. In exchange for the service, Chorus One asked for compensation which includes 2,000,000 LDO tokens. The company is also demanding a revenue-sharing model that entails 20% of the revenue from protocol fees.
Chorus One’s move is very ambitious since it will take a year to accrue 2.5% of the staked SOL supply when it manages to capture 25% of the staked SOL supply. For the record, Chorus One is the most significant SOL stake with up to $600 million in tokens.
From an interview done by Cointelegraph, Lido’s expansion will significantly boost the protocol’s income.
What does it mean for Lido DAO?
For the Dao, expansion on Solana will attract a protocol fee set-up, as is the same case with stETH/liquid staking on Ethereum. As for the 10% fee on staking, rewards will be shared equally between node operators and the Lido DAO treasury.
Lido is also open to increasing its other proof of stake chains. Lido’s mission is to make Etherefum staking simple, secure and decentralized while expanding when possible.
From the data on Lido’s website, there are about 256,964 ETH staked, which is worth $700 billion. The money moves across 5000 addresses while earning 7.1% APY. This makes LIdo the third-largest staking pool, and the APY rewards are expected to increase with time.
Lido’s LDO token performs well with a 54% increase in a day and a 216% increase in a week. There is hope that the price will even increase further as people are looking to diversify their funds.