Host and analyst alias ‘Guy’ of Coin Bureau, one of the popular channels in the crypto world, is the leading smart contract platform of a decentralized autonomous organization (DAO). Ethereum (ETH) thinks it can have a significant impact.
Host Guy, liquid staking protocol Lido FinanceHe stated that it could eventually become the ‘de facto governance protocol’ for Ethereum.
“To put it simply, Lido Finance allows you to ‘stake’ proof-of-stake cryptocurrencies without having to lock them up, meaning you can continue trading while staking these coins. A brief explanation of how this system works is that you stake your crypto-asset via Lido Finance and use the protocol’s token which acts as a kind of ‘receipt’ for the crypto you stake.”
Local presence of Lido Finance Lido DAO (LDO)It was launched in January 2021 and is an ERC-20 token with a maximum supply of one billion and can be used to vote and participate in the decentralized autonomous organization of the protocol.
You can follow the Lido DAO (LDO) price action here.
According to Guy, Lido DAO could essentially start managing the second largest crypto asset by market capitalization due to the high demand for liquid staking.
“As for the management part, if Lido Finance continues to grow at its current pace, it is quite likely that Ethereum will become the de facto management layer once it completes its transition to proof-of-stake.
This is because if 100% of the ETH staked on the Beacon Chain is done through Lido Finance, the Lido DAO will have an incredible amount of impact on Ethereum itself.
The Lido Finance team believes this is inevitable due to the demand for liquid staking. Consider that current estimates see the protocol holding 50% of all staked ETH in the coming months.”
Etherscan revealed that Lido Finance accounts for over 32% of all ETH stored on the Beacon Chain, which is considered the backbone of Ethereum’s proof-of-stake consensus mechanism.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.