In the first quarter of 2024, Lido, the leading staking liquidity platform, recorded impressive results in terms of growth and development, confirming its position in the DeFi (decentralized finance) sector. . Detailed reports on Lido operations provided by the blockchain analytics platform Messari The release shows that many financial and operational indicators have reached new highs, reflecting the success and sustainable growth potential of the platform.
Impressive growth of total value locked (TVL) and market capitalization
One of the bright spots of the report was the strong increase in Lido’s total value locked (TVL). In Q1 2024, Lido’s TVL grew 67% to $35.5 billion. This growth helps Lido maintain its position as the app with the largest TVL in the crypto space. Since the beginning of 2023, Lido’s TVL has increased from more than $5 billion to $35 billion, showing remarkable growth in a short period of time.
Lido’s market capitalization also increased significantly, with 300% growth over the same period, reaching $2.3 billion. This reflects the market’s growing trust in Lido’s platform and products, especially in light of the often volatile cryptocurrency markets.
Record revenue and operating efficiency
Lido achieved record revenue of $28 million in the first quarter, up 46% from the previous quarter. This revenue comes mainly from staking fees, with total staking rewards reaching $287 million, of which Lido receives 10% and distributes the remaining 90% to ETH stakers. This fee is divided equally between node operators and the DAO treasury, ensuring the sustainability and continuous development of the Lido ecosystem.
Although operating expenses increased from $10 million to $13.5 million, Lido reduced its net loss from $1.12 million to $0.19 million, showing a significant improvement in operating efficiency and stability of revenue stream. This proves that Lido not only focuses on growth but also focuses on optimizing costs and improving performance.
The development and application of stETH
stETH, Lido’s staking liquidity token, has proven its value in the DeFi ecosystem with a surge in demand from financial institutions. In Q1, stETH accounted for 50% of deposits on Aave V3, one of the leading decentralized lending protocols. stETH’s daily trading volume has also increased sharply on both decentralized exchanges (DEXs) and centralized exchanges (CEXs), with volumes regularly exceeding $150 million on DEXs and $80 million on CEXs.
stETH not only brings liquidity benefits but also enhances capital efficiency for users, as they can use stETH as collateral in various DeFi protocols, from borrowing to trading. translation and yield farming. This helps users optimize profits from both staking and other DeFi activities.
Advanced technology and decentralization
Lido has taken an important step forward in enhancing the platform’s security and decentralization through the implementation of DVT (Distributed Validator Technology) validators. DVT technology helps improve the reliability and decentralization of Ethereum staking, ensuring the safety and stability of the system.
DVT allows validators to share private keys across multiple servers without having to be constantly online, minimizing the risk of theft and allowing for uninterrupted system maintenance. This technology creates a collaborative system between node operators, distributing operational tasks across multiple nodes, increasing resilience to single vulnerabilities and promoting greater decentralization of infrastructure, geographical location and customer diversity.
Using stETH in DeFi
stETH has been widely adopted in DeFi platforms, from serving as loan collateral to trading on exchanges. stETH’s liquidity and usability have been established through daily transactions and integration into leading DeFi protocols. In particular, wstETH (wrapped stETH), the stable token version of stETH, has become the largest collateral on Aave V3, accounting for 50% of deposits.
This growth not only reflects strong demand from individual investors but also from large financial institutions. With stETH gaining widespread adoption, Lido has cemented its position as a leading staking liquidity solution, delivering outstanding benefits to both individual users and institutions.
Toward the future
With continuous technological developments and increasingly widespread acceptance from financial institutions, Lido is taking steady steps on the path to becoming the leading staking liquidity platform. Innovations like DVT and the increase in demand for stETH show Lido’s strong growth potential in the future.
Lido’s Q1 2024 performance is not only a testament to its current success but also opens up new opportunities, affirming Lido’s position in the DeFi ecosystem and in the global cryptocurrency market. Lido continues to affirm its pioneering role in promoting the development and application of staking liquidity technology, creating a solid foundation for sustainable development in the future.
Thach Sanh
According to Bitcoin Magazine
