One day, John - an investor learning about the cryptocurrency market, heard about Lido - a blockchain project related to unlocking Ethereum's Staking liquidity. John felt very curious and wanted to learn more about this project.
After researching, John realized that Lido has created a revenue stream for the project but currently, this revenue stream has not been divided directly into LDO Token. However, LDO Token still plays an important role in the Lido ecosystem. Currently, LDO Token has participated in 2 main activities of the project, including managing activities in Lido DAO and being used for Incentives to develop demand for using synthetics tokens such as stETH, bLUNA.
John learned more and understood that the Incentives model of pushing product development is no longer strange to the cryptocurrency market. Lido's LDO Token has done this job well and has added more than 10% Yield, thereby attracting many investors to participate in staking ETH on Lido. Currently, LDO Token is used for incentives on different platforms such as Curve Finance, DeversiFi, ARCx, 1Inch Network and Unslashed Finance.
John appreciated LDO Token when learning about it. The common point between Lido and Uniswap is the focus on project value instead of Token price. Both promote project development and use revenue to develop the project rather than dividing it back to UNI or LDO holders. Additionally, both have groundbreaking products and both have created strong communities.
But Lido's strength compared to Uniswap is that Lido did it first with the unlocking of Ethereum's Staking liquidity. Although the Staking liquidity unlocking market has many participating projects such as Ramp, Persistence, Stafi,... but Lido has built a large network effect and has great appeal.
However, with the above factors, the assessment of the LDO token still needs to be carefully considered and have a detailed evaluation of it. The strength of LDO is that it is an important part of the Lido ecosystem and is used for Incentives on many different platforms. This shows that LDO's liquidity is also quite good.
However, LDO coin also faces some challenges, which is that product development for the Ethereum community is increasingly fierce and competitive, this is especially true for the unlocked Staking market. In addition, the fact that LDO is not directly redistributed from the project's revenue stream also makes LDO holders feel a lack of motivation and interest to continue holding.
However, with a strong growing ecosystem and large community, Lido has the potential to grow and create value for the LDO token in the future. This is further reinforced by Lido's top backers and builders, including Paradigm and Blockchain Capital, known names in the blockchain and cryptocurrency community.
In the future, Lido may also seek to solve the problem of sharing revenue streams directly with investors holding LDO, thereby providing incentives and attracting more interest from the community. co-investment. This will help increase the liquidity and value of LDO in the near future.
