Lido, one of the largest staking services on both the Ethereum 2.0 and Terra blockchains, is seeking to expand its staking operations by integrating with more Layer-1 blockchains. Its next target? Solana.
Indeed, CoinTelegraph reported on Friday that a proposal on Lido’s governance forum by crypto infrastructure provider Chorus One contained a plan for a “liquid staking token.” This token, temporarily named stSOL, would theoretically “accrue staking rewards and represent staking positions with Lido validators on Solana.” As such, the token would operate very similarly to Lido’s stETH token, which works with Ethereum 2.0.
“For the Lido DAO, an expansion to liquid staking on Solana could bring with it a similar protocol fee set-up as we’re currently seeing with stETH/liquid staking on Ethereum, whereby a 10% fee on staking rewards is collected and split between node operators and the Lido DAO treasury (e.g. to grow an insurance fund),” a Lido representative told CoinTelegraph.
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Chorus One has proposed “ambitious” Lido vesting unlocks
The development funding that would bring Lido’s staking services to Solana would be sourced from the Ldio Ecosystem Grants Organization, which was founded in March. If the proposal is passed, Chorus One would charge a fee of 2 million LDO tokens, as well as 20% of the protocol fee revenues that would be directed to the Lido treasury.
CoinTelegraph noted that the milestones for Chorus One’s vesting unlocks are “ambitious.” According to the proposal, Chorus one is asking “Lido’s 1,000,000 LDO tokens issued with vesting a 1 year cliff and 1 year vesting when Lido for Solana manages to capture 2.5% of the staked SOL supply,” and “1,000,000 in additional LDO tokens vesting over a year when Lido for Solana manages to capture 25% of the staked SOL supply.”
Whether or not this particular proposal goes through, Lido is still interested in expanding to more layer-1 chains. The representative also told CoinTelegraph that “Lido has a very simple mission – keep Ethereum staking simple, secure and decentralised – and we will look to extend this to other networks where possible.”