Lido on Solana to potentially wind down following financial drought

The fate of Lido on Solana now hangs in the balance, hinging on a community vote slated to take place in four weeks


Ebru-Omer/Shutterstock, modified by Blockworks


Lido on Solana could be on the verge of winding down its operations unless it secures financial backing from the Lido DAO community, according to a funding proposal on Monday. 

The P2P team, which has been steering the project since acquiring it from Chorus One in March 2022, has laid out a critical funding ask aimed at sustaining and expanding its development, analytics and marketing initiatives.

Despite making considerable strides in both product and business development — growing its Total Value Locked from 954,000 SOL to 4.1 million SOL as of October 2022 — the team finds itself in a precarious financial position. 

SOL, or Solana’s native token used to pay fees and staking, has fallen more than 92% from its all-time high of $259, witnessed Nov. 6, 2021, Coingecko data shows.

A reported investment of $700,000 by P2P has so far only yielded $220,000 in revenue, leaving a gaping deficit of $484,000, Yuri Mediakov, product manager at P2P said in the proposal.

In their call to the Lido DAO community, the P2P team is presenting two contrasting scenarios for the future of the project. 

The first involves receiving a development retainer of $200,000 per quarter, an annual marketing budget of $600,000 and $100,000 for customer support — totaling $1.5 million over the next 12 months. 

“We are at a critical juncture where the decisions we make today will shape the future of Lido on Solana,” Mediakov said. “We aim to bring this proposal to a Snapshot vote as soon as possible.”

Mediakov claims the funding would not only cover existing operational costs but also drive the project forward to capture more than 1% of the Solana staking market.

The second, more somber, option outlines a “sunset process” that would begin the gradual winding down of operations. Similar actions were taken last month when MixBytes, the team overseeing Lido on Kusama and Polkadot, ended technical and developer support.

Total liquid staked SOL currently amounts to about $203 million in TVL, of which about $50 million is Lido’s stSOL, per DeFi Llama.

The utility of staking derivatives on Solana was lower than on Ethereum prior to the Shapella upgrade, since Solana always allowed unbonding within about 2-6 days.

If financial backing isn’t secured, new staking deposits will cease beginning Oct. 10 and frontend support will be terminated by Feb. 10 of next year, the proposal reads.

In that instance, the team is seeking $20,000 per month from Lido DAO for technical maintenance over its sunset period.

Macauley Peterson contributed reporting.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


Cross-chain protocol’s product development-focused unit Wormhole Labs formally launches following $225 million raise


Accredited and non-accredited investors worldwide will be able to purchase the Note starting Dec. 6 on US-regulated trading platform INX


Bitcoin’s next halving is less than five months away. History says they’re bullish but will this time be different?


Merger is set to allow the combined business to “flex between our different lines of business,” Hut 8 CEO says


Agency’s decision to start comment window earlier than expected could be bullish for spot bitcoin ETF approval in January, industry watchers say


Jump Crypto is the trading firm at the center of Terra-related market manipulation allegations