Lido gets a massive amount of ARB tokens- Assessing ‘why’
– Lido received a large sum of ARB tokens so that the protocol can take part in its DAO-based governance.
– Active users of the protocol surged.
Lido [LDO] has emerged as a leading player in the DeFi market with the largest Total Value Locked (TVL) in the overall sector. As a result, the Lido protocol generated substantial revenue and was able to support other protocols such as Arbitrum [ARB].
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Reaping the benefits
According to Lido’s 14 April tweet, the Arbitrum Foundation is incentivizing participation in DAO-based governance on its platform by distributing ARB tokens to protocols that have contributed to the growth of the network.
Arbitrum Foundation is distributing ARB tokens to protocols that have played a part in the growth of the protocol in order to encourage DAO-based governance participation across Arbitrum.
Due to its previous support, Lido DAO is eligible to receive 772,621 ARB.
— Lido (@LidoFinance) April 14, 2023
Lido DAO is hence qualified to receive 772,621 ARB tokens as the protocol showed support to Arbitrum in the past. These tokens amount to $1.29 million. The funds can help Lido improve upon different aspects of its protocol.
A proposal was put forward by Lido for the utilization of the tokens towards the continued growth of staking and the wstETH DeFi ecosystem on Arbitrum One. The aim is to initiate ARB token emissions that would incentivize liquidity pools and wstETH users across the Arbitrum network.
Other updates
Following a successful withdrawal credential rotation message signing ceremony, all messages required to finalize the Ethereum withdrawal process were processed by the network.
As a result, all validators on Lido Ethereum are now using the updated 0x01 withdrawal credentials.
Withdrawal credential rotation is crucial for Ethereum-based staking protocols like Lido. It involves creating a new key, ensuring all validators use it, and improving security. Now that all validators on the network are updated, it is safer for users to stake and unstake their holdings.
After a successful withdrawal credential rotation message signing ceremony, completed April 5th, all messages have now been processed by the network, finalising the rotation 🎉
All Lido on Ethereum validators are now using 0x01 withdrawal credentials! https://t.co/otHaEE2kT1
— Lido (@LidoFinance) April 14, 2023
Read Lido DAO’s [LDO] Price Prediction 2023-24
State of the protocol
At press time, the protocol was doing relatively well. According to the token terminal’s data, the number of daily active addresses on the protocol surged by 64% in the last week. Coupled with that, the revenue generated by the protocol also increased in this period.
Source: token terminal
Well, one of the reasons for the unprecedented interest in the protocol could be the high APR (Annual Percentage Return) provided to Lido’s users.
Source: Dune Analytics
