🔥 Lido Strives to Reinstate stETH Token Status
posted 11 Jun 2024
Ethereum staking service Lido is planning partnerships with restaking platforms Mellow Finance and Symbiotic. This comes as EigenLayer, a restaking protocol, has significantly closed the gap in total value locked (TVL) from $30 billion to $15 billion within six months.
Lido developers see the rapid growth of EigenLayer as a potential risk to the stETH token, even though Lido still holds the position of the largest DeFi protocol on Ethereum with over $30 billion in TVL. They now await feedback on their proposal from Lido DAO, which manages the project’s strategy and growth.
The strategy for Lido is to demonstrate to the market that using stETH as the restaking asset of choice is actually the superior way of doing restaking,- stated adcv, the pseudonymous co-founder of Lido DAO's finance workstream.
Recently, the formation of the Lido Alliance was announced, which includes a variety of partners supporting the stETH token. Besides this initiative, Lido is actively backing Mellow Finance and Symbiotic not only technically but also financially, investing in protocol enhancements.
Officially, Lido can negotiate partnerships with any restaking platform except EigenLayer, where developers have imposed a cap on stETH deposits. This is mainly to motivate users to withdraw Lido assets and invest in other projects, including EigenLayer.
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