Lido Is About To Set A TVL Milestone With $19.2 Billion Realized In Staked Assets

The liquid staking solution provider, Lido, is moving toward making the top spot its own in in terms of total value locked (TVL) in the DeFi space.

Additionally, the TVL in DeFi is currently hovering slightly above the $214 billion mark, and Lido aims to reach the top spot in terms of TVL in the DeFi protocol.

The liquid staking solution platform currently holds the sum of  $19.2 billion in staking funds derived from different blockchain networks, including Solana, Terra, Ethereum, Kusama, and Polygon.

Lido’s Stake is Part of the $214 Billion Locked in DeFi

It is reported that $214 billion is kept in the decentralized finance protocol at the time of publication. The most extensive DeFi protocol reported to have the most considerable TVL size is Curve Finance. 

According to the data released by defillama.com, Curve currently leads the pack with $20.71 billion and a dominance rating of 9.67%.

As far as TVL is concerned, Curve continues to lead the pack for weeks, but the liquid staking solution, Lido, is primed to take control once the required amount of TVL is achieved, which is expected to be sooner rather than later.

According to the metrics released by defillama.com, Lido’s TVL is $18.97 billion. An increase of 16.02% has been recorded in the past 30 days. Lido has experienced significant adoption and uses because the DeFi protocol enables users of Ethereum, Solana, Kusama, Polygon, and Terra to stake their assets to gain more yields.

In this case, a user can decide to turn Terra’s LUNA into another new hybrid token called BLUNA; the LUNA token would be exchanged for BLUNA to begin staking rewards from the tokens bonded. 

Although Lido’s TVL is $18.97 billion, it can only account for four out of the five blockchains that Lido uses during staking. Polygon failed to make the defillama.com metrics as more activity is required before any metrics can be sourced from its platform.

Lido’s Staking Solution is Among the Lowest

The current staking estimates show that Lido’s Ethereum staking solution has a relatively low 3.9% annual percentage yield, and Kusama’s has the highest with a 23.9% APY. Lido may be noted for its ability to process double-stake assets. 

However, some DeFi liquidity solution providers sometimes take a substantial part of the reward from the Lido staking protocol. And users have been forewarned about the possibility of this happening.

Meanwhile, Lido presents a unique benefit to its users not found in other liquid staking platforms. Users on the Lido protocol can skip using a validator lock-up timeframe because they will be able to sell bonded tokens in the market without any issue.

Moreover, users who choose to go by this route will forfeit the fee associated with the token swap and a rough estimate of 1 to 2% of their value, as may be the case.

Lido is poised to make an inroad in liquid staking once it reaches the peak, taking over Curve’s top spot.

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