The Funding Proposal for Lido Finance’s Liquid Staking Service on Solana
The team at Lido Finance’s P2P division, responsible for managing operations on Solana, has put forth a funding proposal to ensure the sustainability of Lido’s liquid staking service on the decentralized network’s layer-1. The proposal, presented by Yuri Mediakov and the P2P team, offers two options: the Lido DAO approves $1.5 million in funding to support growth, or staking support for Solana users will be phased out by Q1 2024.
To facilitate growth and keep the ‘Lido on Solana’ project alive, the P2P team proposes a $1.5 million cash injection over the next year. The allocated budget includes $600,000 annually for marketing, $200,000 per quarter for development costs, and $100,000 for customer support.
With the planned funding, the P2P team aims to capture 1% of Solana’s staking market and compete with other providers in the ecosystem. Currently, Marinade Finance holds the top position in Solana’s staking platforms with $103 million in total value locked (TVL), while Lido Finance ranks second with approximately half of Marinade’s TVL.
If the proposal is approved and the P2P team achieves a 1% market share, they anticipate generating 10,191 SOL (equivalent to $200,000 at current prices) per year. However, an alternative option presented by Mediakov involves discontinuing Lido on Solana by February 2024, gradually phasing out support and allocating $20,000 monthly for maintenance costs throughout the transition.
Voting and the Road Ahead
The proposal will undergo a voting process beginning in four weeks, and it is open for discussion on Lido’s forum. P2P took over the management of Lido on Solana in March 2022 through an agreement with Chorus One. Since then, the project’s SOL TVL has grown by 330% and achieved significant market share growth. Despite facing losses of almost $500,000 due to declining SOL prices and FTX’s crash in November 2022, Mediakov and the P2P team firmly believe that the liquid staking service can play a pivotal role in DeFi’s success on Solana.
“We are at a critical juncture where the decisions we make today will shape the future of Lido on Solana. We are optimistic about what we can achieve together and look forward to your constructive feedback.”
Yuri Mediakov, senior product manager at Lido Finance
Hot Take: The Future of Lido’s Liquid Staking Service on Solana
The proposal put forth by the P2P team for funding Lido Finance’s liquid staking service on Solana sets the stage for a crucial decision. Choosing to support growth through the approved funding or winding down staking support would significantly impact the future of Lido on Solana. With Marinade Finance currently leading the staking platform space on Solana, Lido Finance aims to gain a competitive edge by capturing 1% of the market through the proposed funding. The upcoming voting process and community discussions will shape the direction of Lido on Solana, and its success will depend on constructive feedback and collaboration among stakeholders.
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