Modular Crypto | Lido DAO Preliminary Report
Introduction
Throughout the month of October, Modular Crypto dedicated part of its live program “State of Ethereum” to Lido DAO and its significant role in Ethereum. The discussions covered key topics such as staking metrics & analytics, Lido’s mission to decentralize and scale Ethereum, and the introduction of the Community Staking Model (CSM). We also highlighted Lido’s partnerships in DeFi and its market positioning, emphasizing its journey, impact, governance structure, challenges, and products. A summary of these discussions was sent out to all subscribers in our weekly newsletter, ensuring everyone stays informed about the latest developments.
Speakers
- João Kury – Co-founder, Modular Crypto
- Guelfi – Co-founder, Modular Crypto
- Gino Matos - Head of Research, Modular Crypto
Lido at State of Ethereum
- Views: 330
- Likes: 70
During the “State of Ethereum,” we announced that we received a grant from Lido Community Staking Grants and highlighted statistics about Lido and the staking market. We discussed how Lido could have been a concern for the Ethereum network, but emphasized that this is not the team’s goal, as the protocol’s values are aligned with decentralization. We also introduced the “Community Staking Module” and invited everyone to follow the weekly updates we were creating to learn more about what CSM is all about.
State of Ethereum - October 17
- Views: 400
- Likes 70
During the State of Ethereum, we discussed Lido’s market share in Liquid Staking, which, despite decreasing, still holds the largest market share. We emphasized that Lido has established itself as the most reliable and resilient Ether staking protocol, consistently focusing on product improvement rather than diverting into other narratives. We encouraged participation in Lido Governance, highlighting an activation we are doing on Zealy to bring more people to the Lido Governance forum. We also announced that stETH went live on Optimism, marking the first time stETH has reached an Ethereum Layer 2, likely attracting more capital to the protocol due to the scalability and accessibility offered by L2s. Additionally, we shared that the contracts for Lido’s Community Staking Module have been put to a vote, diving into what CSM is about and its importance.
State of Ethereum - October 24
- Views: 530
- Likes: 78
During the State of Ethereum, we discussed the recent 10% increase in Lido’s USD TVL within just a week, underscoring confidence. We talked about the different preferences for running a node or staking with Lido, noting that the protocol’s reliability and security are key to its market leadership. We presented the Lido Dune dashboard, which allows users to track protocol statistics, and mentioned the ongoing vote to release the Community Staking Model (CSM) and upgrade the staking router. Although the vote was trending positively, we noted that the minimum threshold of 5% of the LDO token supply required for approval had not yet been reached, and we encouraged all LDO holders to participate in the vote. Finally, we shared that Lido increased the staking limit on the Mellow Protocol, allowing users to deposit Ether and receive rewards.
State of Ethereum - October 31
- Views: 320
- Likes: 56
During the State of Ethereum, we announced the approval of the Community Staking Model (CSM) and our upcoming workshop to demonstrate the practical side of staking through CSM, encouraging those interested in decentralizing and securing the Ethereum network to participate. We highlighted that this initiative is in the early adoption phase and will be open to all soon, providing an accessible, permissionless model. We emphasized the impressive results of CSM Early Adopters. We covered the live metrics and explained that, through the Community Staking Model (CSM), decentralization critiques are being addressed, aiming to further decentralize the network and broaden accessibility. We concluded by emphasizing that this initiative by Lido demonstrates the vitality of the Ethereum ecosystem, pointing out that if the network’s largest protocol is committed to solutions like the CSM, it is because the community demands more security and decentralization.
Additionally, we discussed Lido’s initiative with Dappnode, which offers a specialized and simple device for operating nodes. We also highlighted Lido’s partnership with Obol Protocol, focusing on “squad staking.” Finally, we discussed the launch of Lido’s isolated market by AAVE on the mainnet, which reached the milestone of $1 billion in just 93 days.
Overview of Research
Lido: The Path of a Giant Towards Decentralization
We created the report about Lido, discussing its role as the largest decentralized application by TVL in crypto. We covered Lido’s governance process and the importance of DVT in mitigating centralization risks. We also highlighted recent developments, including the approval of the Community Staking Model (CSM). Additionally, we addressed Lido’s initiatives with other decentralized applications and its partnerships with Dappnode and Obol Protocol, as well as the impressive adoption of the CSM by early users.
Modular News/Newsletter
In “Modular News,” our daily news program, we announced Lido’s initiatives for that month at both the beginning and end of the show, covering the latest updates from Lido throughout the month. Additionally, we sent out a weekly newsletter every Sunday that included a summary of the key points discussed about Lido during the “State of Ethereum” live sessions. This approach ensured our community were consistently informed about the latest news and developments from Lido.
This is a preliminary report. We will be creating additional deliverables based on our proposal and other planned activities, such as interviews at the Lido Connect 2024 event in Thailand. Following these efforts, we will publish a comprehensive report highlighting everything we did regarding this initiative.
We thank Lido again for the support. The feedback from our community has been very positive. More updates will follow as we move forward.