In the fast-paced world of cryptocurrencies, Lido DAO (LDO) has made significant waves in the past week, experiencing an impressive surge of nearly 20%. Though the surge comes at a time the global crypto market is not deep in a downtrend, Lido’s current rally can be attributed to two notable factors.

Over the past seven days, LDO has recorded a significant spike, up by 16%. The asset has picked up from trading at a low of below $2 as of May 9 to trading at a high of $2.25, at the time of writing. Meanwhile, over the past 24 hours, the rally continues as the asset is currently up 6.3% with an increasing trading volume.

Whale Accumulation Fuels Lido’s Surge

One possible catalyst for Lido’s remarkable performance over the past 7 days is the increased buying activity by cryptocurrency whales. According to a recent report by Onchain analyst Lookonchain, three whale accounts have been observed accumulating LDO tokens.

Notably, these whales have been seen transferring their LDO assets from centralized cryptocurrency exchange Binance to personal wallets, indicating a deliberate accumulation strategy. The magnitude of these whale transactions is noteworthy.

For instance, one address withdrew a substantial amount of 724,822 LDO tokens, valued at approximately $1.52 million, from Binance for $2.01 per token. Another whale withdrew 655,641 LDO tokens, equivalent to $1.38 million, from Binance at $1.83 per token. Additionally, a third whale purchased 570,883 LDO tokens using 974,000 USDC for $1.71 on May 12.

This influx of capital from these significant players in the market has undoubtedly contributed to the surge in Lido’s value.

Lido V2 Launch Amplifies Momentum

Another driving force behind Lido’s recent upward trend is the launch of Lido V2. This highly anticipated upgrade brings several notable features to the Lido DAO ecosystem, enhancing its appeal to investors and participants. A key highlight of the V2 release is the ability for users to withdraw their staked Ethereum (ETH).

With the new Withdrawals page, Lido users can easily deposit their staked Ethereum tokens, such as stETH or wstETH, and receive ETH in return. Lido has streamlined the withdrawal process, reducing the withdrawal period to as short as 1-5 days.

This improvement not only enhances the liquidity and accessibility of staked Ethereum but also provides users with greater flexibility and control over their assets. Additionally, the V2 upgrade introduces a modular staking router, which promotes staking diversity among several cohorts.

Solo stakers, decentralized autonomous organizations (DAOs), and Distributed Validator Technology (DVT) clusters can now participate in staking activities through Lido, further expanding the network’s staking capabilities.

LDO’s price has already risen nearly 20% since the upgrade, with a market currently above $2 at the time of writing. Alongside the price surge, Lido DAO’s market capitalization has also experienced a notable rise. The market cap moved from $1.4 billion last Friday to $1.9 billion today.

Moreover, the trading volume of LDO has also witnessed a significant uptick over the same period indicating the increasing accumulation of the asset. Lido’s trading volume has surged from $47.4 million last Friday to more than $104 million in the past 24 hours.

#ldo #lido #crypto2023 #Binance

Decrypting DeFi is Decrypt's DeFi email newsletter. (art: Grant Kempster)

Liquid staking giant Lido Finance is finally looking to shake up its tokenomics.

Specifically, as alluded to in a new proposal, members of the community are looking to add a staking feature to LDO.

Remember: In order to stake directly to the mainnet, users need 32 ETH or nearly $60,000 at today’s prices. Given the high barrier to entry, liquid staking services like Lido have emerged, letting users deposit any amount of ETH and begin earning.

Watching this proposal develop will be a top priority for many in the space. Lido is, after all, the largest DeFi project with a whopping TVL of nearly $12 billion.

Coinbase Pauses Ethereum Staking Reward Withdrawals for Up to Three Days

The proposal is still in its very early stages, but here’s the pitch in a nutshell:

LDO holders would be able to stake those tokens and begin earning rewards drawn from the protocol’s revenue. Lido currently generates revenue by charging users a 10% fee on those rewards. Half of that goes to the project’s DAO and the other half goes to various node operators that execute the actual mainnet staking.

This new proposal specifies that, if passed, stakers would earn between 20% and 50% of the Lido DAOs revenue. Basically, up to half of that 5% service fee. And this would be executed via buybacks, in which generated revenue would be used to buy more LDO tokens (and distributed).

But it’s not free money. For that extra bit of yield, LDO stakers also become the “insurance providers of last resort,” the proposal reads.

Should the project’s insurance fund get drained due to a hypothetical mass-slashing event, up to 30% of LDO stakers’ funds would be next on the chopping block.

Eigen What? How EigenLayer Is Putting $34B in Staked Ethereum Back to Work

Slashing refers to the penalty that Ethereum validators would face should they suffer any downtime or begin validating fraudulent transactions on the network. Remember the 32 ETH needed to deposit to join the network? Slashing takes some of that deposit from the validator.

Lido has, however, made assurances that such an event is “unlikely to happen given the quality of the Lido validator set and its proven track record.” Still, it’s a risk.

As to how the proposal is being received by token holders, it’s a bit of a mixed bag, ranging from its “a ponzi scheme” to “finally something useful for LDO.”

It’s also not super unique.

Aave, for example, does precisely this via its safety module. AAVE holders can stake their tokens, earn extra yield, but also bear a similar slashing risk should the lending platform face a bad debt situation.

Given the community's general take on the proposal, we're likely to see a new draft soon.

It's a good first attempt at adding a bit more utility to what's essentially just a voting token after all.

Decrypting DeFi is our DeFi newsletter, led by this essay.

#lido #lidodao #staking

Lido is considering a new proposal to use its ARB airdrop to enhance activity on Arbitrum.

The proposal would see Lido accept its $1.2 million in ARB tokens and reward them to liquidity providers in wstETH pools.

It could go to a vote later this week, and the result will have a bearing on LDO and ARB prices.

The Lido DAO community is set to vote on operational and strategic topics concerning how to claim and make valuable use of ARB tokens. More specifically, the vote will determine whether to accept Arbitrum’s airdrop and if the claimed ARB tokens could serve as emission rewards for incentivizing the adoption of wrapped staked Ether (wstETH) across the Arbitrum network.

In response to this airdrop, the Lido DAO rewards committee puts forward the following proposal. This proposal covers operational and strategic topics related to claiming and making productive use of the potential ARB tokens. This proposal will enable the rewards committee to pursue the continued growth of staking and the wstETH DeFi ecosystem on Arbitrum One (and beyond).

Lido’s Operational and strategic topics

Justin David Reyes, Lido’s head of decentralized finance (DeFi) business development and partnerships, submitted the proposal that precedes the vote on April 12. In his submission, Reyes suggested that liquidity providers (LPs) for the wstETH pools on Arbitrum be rewarded with ARB tokens.

According to marketing lead Kasper Rasmussen, the incentives program would operate similarly to how liquidity pools currently earn extra LDO rewards in addition to staking rewards, adding that the vote could take place within the week.

Lido to claim hundreds of thousands of ARB tokens

The deliberation comes almost a month after Arbitrum’s airdrop for its governance token, ARB, went live. The launch saw early adopters of the layer 2 (L2) scaling solution enjoy lucrative rewards, including some decentralized autonomous organizations (DAO) such as Lido, which played an enabling role in the growth and success of Arbitrum.

As a component of that airdrop, the Arbitrum Foundation has expressed that they are allocating a portion of the governance, via the ARB governance token, to communities that have played a role in the growth and health of the Arbitrum ecosystem.

A Google doc within Arbitrum Foundation’s governance documents reveals that Lido is entitled to claim up to 772,621 ARB tokens, translating to over $1.2 million at prevailing rates. Further, the proposal notes that 33,400 wrapped staked Ether has already been bridged to the Arbitrum ecosystem, with the cumulative number of wstETH transactions on Arbitrum now reaching over one million.

Based on the governance documentation, there are no specific conditions on the distribution of the said tokens, which leaves it in the hands of the Lido DAO network to determine how best to use the tokens in participating in the governance and growth of the Arbitrum ecosystem.

Possible impact of vote outcome on LDO and ARB prices

Meanwhile, Lido price (LDO) and Arbitrum price (ARB) are still experiencing a lack of directional bias and have been consolidating under formidable zones for weeks.

The outcome of the vote could catalyze a possible breakout for both Layer 2 tokens. For Lido price, a positive outcome could see LDO breach the immediate barricade at $2.63 and clear the path for a potential climb of around 15% to the next roadblock of around $2.92. The L2 token could tag the $3.27 hurdle in a highly bullish case, denoting a 30% upswing.

Regarding Arbitrum price, passing the proposal could restore ARBabove the $1.70 resistance level, paving the way for the altcoin to reclaim its local high of around $1.80. Such a move would constitute an uptick of about 10% from current levels.

Conversely, failure to pass the proposal could see Lido price drop toward the $1.96 swing low before a possible pullback. On the other hand, Arbitrum price could lose the critical support at $1.59, exposing the L2 token to a cliff that could send ARB down around 10% to $1.50.

#lido #arbitrum #arb #Binance #BullRun

Lido Dao price shifts away from $2.20 with less upside potential in sight.

LDO nears the oversold barrier in RSI again.

Only one element stands in the way of LDO imploding.

Lido Dao (LDO) is in the red and sending out distress signals as a new low was printed early Tuesday. Support is nearby, although it is questionable based on the current pattern  whether bulls will be there to support it. If the important 200-day Simple Moving Average (SMA) gives way, it will take many Hail Marys to avoid a systemic meltdown in the price action that could add up to the price being cut in half.

Lido Dao price playing with fire as a meltdown is near

Lido Dao price action on Tuesday morning can be compared with the Armageddon or doomsday pictures you often see in comic sitcoms where persons on the street shout: "All is lost! All is lost!" It must feel like that for bulls at the moment as suddenly a lot of them find themselves stuck in a negative position with the risk that that negative number could start to double or even triple. LDO is flirting with the break of the 200-day SMA, opening up a two–tiered area where losses might vary from 25% to 50%.

LDO has one small circuit breaker at $1.85 that could still do the trick if the 200-day SMA does not hold. Once that $1.85 treads water, expect to see another leg lower of 25% toward $1.43. Conveniently, the new pivots for May almost falls in line with that barrier. In case that does not hold, a big gap opens up that will LDO below $1 with $0.87 as the best guess for support going back to the autumn of 2022.

A bounce at either first barrier would be enough to send LDO back above $2 and would make sense with the RSI being oversold again. There is little incentive for bears to get involved here if no breakout has occurred just yet to the downside. On the topside, that $2.20 will prove to be a firm test, and the 55-day SMA is coming in near $2.32 just above. 

#lido #Binance #BTC #crypto2023 #DAO

Lido DAO price shows a head-and-shoulders setup forming on the three-day chart,

A three-day candlestick close below $2.00 will trigger a 38% crash to $1.25.

Invalidation of the bearish thesis will occur if LDO produces a three-day candlestick close above $2.62. 

Lido DAO (LDO) price shows a clear formation of a top reversal set up on the three-day charts. The LDO token is hovering dangerously close to a breakout level that opens the floodgate of selling pressure. 

LidoDAO price reveals a pessimistic outlook

Lido DAO (LDO) price has formed a head-and-shoulders setup on the three-day chart. The pattern that spans all the way up to January 2023 contains three distinctive peaks. The central one is termed the head, while the ones on either side are named shoulders and are of relatively equal heights. The valleys of the three peaks can be connected using trend lines to reveal a horizontal support level known as the neckline.

A decisive break of this neckline will trigger a bearish descent, The setup’s target is obtained by adding the distance between the head’s peak and the neckline to the breakout point at $2.04 to reveal the target of $1.25.

If the ongoing bearish outlook continues for the crypto ecosystem, Lido DAO (LDO) price is likely to slide below the neckline at $2.04. In such a case, investors need to observe the $1.67 and $1.54 levels for support. A breakdown of these two support structures would send LDO to the theoretical target of $1.25.

Regardless of the bearish outlook, if Bitcoin dominance declines, it will allow altcoins, include LidoDAO price, to recover. In such a case, if LDO produces a three-day candlestick close above $2.62, it will invalidate the head-and-shoulders setup.

This development could see Lido DAO (LDO) price rally 26% and tag the head’s peak at $3.33.

#Binance #crypto2023 #lido #LDO #keepbuilding

Are you tired of trading futures day and night, keeping an eye on the market for meager profits? Here is a solution to help you earn stable income - the LIDO protocol. #lido $LDO

🦁️What is the LIDO protocol

The LIDO protocol is a decentralized lending protocol based on blockchain technology, with the full name 'Lendroid Support Protocol'. Its goal is to provide digital currency holders and exchanges with a more flexible and low-cost lending service, while protecting the interests of borrowers and lenders.

The L IDO protocol utilizes smart contracts to implement functions such as borrowing, lending, collateralization, and liquidation. It ensures security and transparency by introducing distributed storage and digital identity recognition technology. Users can use various digital assets as collateral for loans without the need for credit ratings

The LIDO protocol also adopts a unique approach to handle liquidation issues. It utilizes community members to manage the liquidation process to ensure fairness and transparency. In addition, the LDO protocol introduces incentives such as LDO token rewards and fee reductions to attract more users to participate in the platform

☁️How LIDO Helps People Make Money

The LIDO protocol provides multiple ways for users to make money:

Lending interest: Users can earn interest by lending digital assets on the LDO platform, and there is no minimum collateral requirement. At the same time, the issue of high gas fees on the Ethereum network has also been well resolved, enabling users to engage in lending operations at lower costs.

Stablecoin trading: Users can use the LDO protocol as a stablecoin trading platform and earn profits during the trading process. Stablecoin trading typically has lower risks and volatility, thus being relatively stable in the market. Users can earn certain profits through this approach.

Community participation: The LDO protocol encourages users to actively participate in community activities such as developer challenges, governance proposal voting, etc. Community members can also earn profits through token rewards and dividends

🌟How to use the LIDO protocol

To use the LIDO protocol, you need to follow some basic steps:

First, you need to access the LIDO platform, register an account, and create a digital wallet. You can use any Ethereum-supported digital wallet to connect to the LIDO platform.

After connecting to the LIDO platform, you need to deposit digital assets into your wallet and use them as collateral to lend other digital assets. You can also choose to borrow digital assets in exchange for collateral.

When conducting lending operations, you need to read and agree to the terms and conditions of the LIDO protocol. These terms include how to handle collateral, lending rates, liquidation processes, etc.

Once you have conducted lending operations, you can earn profits through the LDO protocol. For example, if you are a lender, you can earn profits from the interest paid by borrowers. If you are a borrower, you need to repay on time to avoid penalties.

With the above solution in mind, take action and pledge your ETH to earn your first million steadily.