Diva’s Attempt to ‘Vampire Attack’ Lido
A new liquid staking platform called Diva is making an attempt to ‘vampire attack’ the dominant player in the industry, Lido. This strategy involves offering better incentives for stakers by rewarding them with DIVA tokens in exchange for locking up their ETH and stETH for divETH. The attack seems to be gaining traction, as Diva’s total value locked (TVL) has surged by almost 600% in the past two weeks. Currently, Diva has 14,123 Lido staked ETH (stETH) worth around $22.4 million. Diva is powered by Distributed Validator Technology (DVT) and offers a liquid staking token called divETH.
Lido Governance Votes to Sunset Solana
Meanwhile, Lido governance token holders have voted to discontinue Lido on Solana. In an announcement, it was stated that stSOL rewards will be discontinued, and users are encouraged to unstake SOL until February 4, 2024. This decision does not reflect a lack of belief in the potential and longevity of the Solana ecosystem as a whole, according to Lido contributors. As a result of this news, the price of Lido DAO (LDO) tokens dropped by 2.7% to $1.59.
Hot Take: Diva Poses a Threat to Lido’s Dominance
The emergence of Diva and its ‘vampire attack’ strategy poses a significant threat to Lido’s dominance in the liquid staking market. With better incentives for stakers and a surge in TVL, Diva is successfully attracting users away from Lido. This move is welcomed by the Ethereum community, which has expressed concerns about Lido’s growing influence and the potential for cartelization. While Lido faces challenges from Diva, it also faces setbacks with the discontinuation of its presence on Solana. These developments highlight the evolving landscape of liquid staking and the need for established players to adapt and innovate to maintain their position in the market.
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