Shalini Nagarajan


<p>Lido Finance, known for its liquid staking solution, will no longer accept new staking requests for Solana tokens. This comes after Lido token owners voted in large numbers to pause the service.</p>



<p>After many discussions on the Lido DAO forum, the token holders chose to gradually end the use of the protocol on Solana.</p>



<p>“After much discussion and a vote by Lido DAO members, it was decided that the best course of action would be to wind down Lido on Solana,” the team said in a <a href="https://blog.lido.fi/sunset-lido-on-solana/">blog</a> on Monday.</p>



<p>“Whilst this decision was difficult in the face of numerous strong relationships across the Solana ecosystem, it was deemed a necessity for the continued success of the broader Lido protocol ecosystem,” they added.</p>



<p>The decision to phase out Lido on <a href="https://blockworks.co/tag/solana">Solana</a> occurred following a <a href="https://blockworks.co/news/lido-solana-staking-sol">proposal submitted to the Lido DAO</a> by the development team, P2P Validator, in early September.&nbsp;</p>



<p>This proposal detailed the successes, obstacles and potential future of Lido on Solana.</p>



<p>The P2P team laid out two distinct paths for consideration. One option proposed keeping Lido on Solana running, with Lido DAO&#8217;s financial support. This plan called for $200,000 every quarter for development, $600,000 per year for marketing and $100,000 for customer support, totaling $1.5 million over the next 12 months.</p>



<p>The other option was to simply end, or &#8220;sunset,&#8221; <a href="https://blockworks.co/tag/lido">Lido</a> on Solana, taking the project in a different direction.</p>



<p>Since taking over, the P2P team spent around $700,000 on Lido on Solana, earned $220,000 and faced a loss of $484,000, according to the proposal&#8217;s author, Yuri Mediakov.</p>



<p>More than 92% of the Lido community voted to end the product rather than keep it going, according to a <a href="https://snapshot.org/#/lido-snapshot.eth/proposal/0x37c958cfa873f6b2859b280bc4165fbdf15b1141b62844712af3338d5893c6c8">vote</a> that closed on Oct. 5.</p>



<p><strong>Read more:</strong> <a href="https://blockworks.co/news/solana-anatoly-yakovenko-roadmap-future-ftx-collapse">Rebuilding trust: Solana’s roadmap after a challenging year</a></p>



<p>Those holding stSOL, Lido&#8217;s tokenized version of staked Solana (<a href="https://blockworks.co/price/sol">SOL</a>), will continue to receive network rewards throughout the sunsetting process. Support for the Lido on Solana Frontend will end on Feb. 4.</p>



<p>Solana’s native token SOL has dropped over 21% in the last 12 months, and last traded around $24.41 on Tuesday, according to <a href="https://blockworks.co/price/sol">data</a> from Blockworks Research.</p>



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Lido Finance drops Solana staking after DAO decision

Sam Martin

<div id="highlights-block_60c9fc7f1690b" class="highlights">
        <ul>
                <li>Bitcoin supply is becoming illiquid while CME futures activity picks up</li>
                <li>Bitcoin dominance continues its rally</li>
            </ul>
    
</div>



<h3 class="wp-block-heading">Expert Insight</h3>



<p>&#8220;We know at Genesis that the institutions are increasing their interest because we talk to them, but you know institutions take time to get all the due diligence. So, we know that the interest has been building. We also know that the liquid supply of Bitcoin has been declining because this is something you can see by simply looking at the on-chain data. </p>



<p>The buyers so far this year have mostly been long-term holders, which means that as more and more Bitcoin gets bought and tucked away in cold storage for investment purposes, there is less liquid supply for new buyers to purchase. So you have a growing institutional interest against the backdrop of declining liquid supply.&#8221;</p>



<p>-Noelle Acheson, Head of Market Insights at Genesis </p>



<h3 class="wp-block-heading">Bitcoin</h3>



<p>Historically speaking, the Bitcoin price and S&amp;P 500 have had a tight correlation. Since the beginning of October, that correlation has begun to weaken. Whether the trend will continue remains to be seen. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="910" height="661" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png" alt="" class="wp-image-9052" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=910 910w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=354 354w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=359 359w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=301 301w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/BTCUSD_2021-10-06_16-57-52.png?w=80 80w" sizes="(max-width: 910px) 100vw, 910px" /><figcaption>Source: Trading View</figcaption></figure>



<p>BTC futures open interest on CME, a futures exchange where a lot of institutional activity takes place, has <a href="https://www.forbes.com/sites/javierpaz/2021/10/06/as-bitcoin-passes-55000-cme-futures-data-even-more-bullish/?sh=6459c277778c&amp;utm_source=TWITTER&amp;utm_medium=social&amp;utm_content=5658840587&amp;utm_campaign=sprinklrForbesCrypto" target="_blank" rel="noreferrer noopener">risen 33% </a>from September 7th to October 5th. </p>



<p> &#8220;The other thing that screams that this is institutionally driven for me is the CME basis. The CME derivatives exchange offers the lowest leverage of any crypto derivatives exchange,&#8221; Noelle Acheson of Genesis told Blockworks. &#8220;And yet the basis, which is the difference between the futures price on the CME and the spot price, started shooting up this morning. It&#8217;s now even higher than the basis on some of the other higher leverage futures exchanges.&#8221;</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="959" height="536" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg" alt="" class="wp-image-9054" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=959 959w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/CME-OI.jpg?w=80 80w" sizes="(max-width: 959px) 100vw, 959px" /></figure>



<h3 class="wp-block-heading">Ethereum</h3>



<p>With some of the other major Layer-1&#8217;s such as Solana ($SOL), Terra ($LUNA), and Binance Smart Chain ($BSC) underperforming and $ETH holding its ground, it appears that the rotation into the blue-chips of the digital asset industry is underway. </p>



<p>The put:call ratio for Ethereum sits at 0.647, according to <a href="https://app.laevitas.ch/dashboard" target="_blank" rel="noreferrer noopener">laevitas.ch</a>, signaling that traders are heavily favoring calls over puts. Perpetual funding rates are fairly high on some of the exchanges with the largest volume, indicating that traders taking a long position are paying hefty premiums to hold their position. It is currently at a 60.13% APR on the Binance ETH/USDT pair. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="980" height="296" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png" alt="" class="wp-image-9056" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=980 980w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.42.15-PM.png?w=80 80w" sizes="(max-width: 980px) 100vw, 980px" /><figcaption>Source: https://app.laevitas.ch/dashboard/eth/derivs</figcaption></figure>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p>NFTs continue their hot streak, notching $10 billion in sales for 2021 as of today according to a <a href="https://www.cnbc.com/2021/10/06/nft-trading-volume-hit-10-billion-2-reasons-why-people-are-buying.html" target="_blank" rel="noreferrer noopener">report from CNBC.</a> Bank of America also released an <a href="https://cms.blockworks.co/?p=9007" target="_blank" rel="noreferrer noopener">extensive report </a>on digital assets and had some interesting words on NFTs; “NFTs can be used instead of deeds, titles or anything currently needed to demonstrate ownership — and all without a middleman charging a fee”. Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="358" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png" alt="" class="wp-image-9062" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.09-PM-1024x358.png?w=1274 1274w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="293" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png" alt="" class="wp-image-9063" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-5.59.47-PM-1024x293.png?w=1235 1235w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure>



<h3 class="wp-block-heading">DeFi</h3>



<ul><li>Fei protocol, a project that aims to create a decentralized stable coin, made a <a href="https://medium.com/fei-protocol/introducing-fei-v2-6f56afe7a1b5" target="_blank" rel="noreferrer noopener">large upgrade</a> to the Fei mechanism. </li><li>Lido Finance, a non-custodial staking solution, <a href="https://blog.lido.fi/vulnerability-response-update/" target="_blank" rel="noreferrer noopener">responds</a> to some vulnerabilities that were reported yesterday. </li><li>Olympus DAO unveils a new service that aims to share Olympus&#8217; bond innovation with treasuries across DeFi, <a href="https://twitter.com/chasedevens/status/1445800257325912064?s=20" target="_blank" rel="noreferrer noopener">per messari analyst, Chase Devens.</a></li></ul>



<p>Total Value Locked (TVL) in DeFi is hovering around all-time-highs. </p>



<figure class="wp-block-image size-large"><img decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-06-at-6.19.58-PM-1024x340-1.jpg" alt="" class="wp-image-9065"/><figcaption>Source: Defi Llama</figcaption></figure>



<h3 class="wp-block-heading">What else we are looking out for&#8230;</h3>



<ul><li>Initial and continuing jobless claims on Thursday</li><li>Nonfarm payrolls, unemployment rate and average hourly earnings on Friday</li></ul>



<p>That is all for today, folks. Let&#8217;s do this again at the same time tomorrow. </p>



<hr class="wp-block-separator"/>



<p><strong>Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.</strong></p>



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