While the total value locked (TVL) in decentralized finance (defi) hovers just above the $214 billion mark, a defi protocol called Lido has been moving closer toward taking Curve’s top spot in terms of TVL in a defi protocol. Currently, the liquid staking solution Lido has $19.2 billion in staking assets derived from five different blockchain networks including Ethereum, Solana, Terra, Polygon, and Kusama.

Lido’s Staked Assets Represent Close to 9% of the $214 Billion Locked in Defi

According to defillama.com, there’s $214 billion total value locked in decentralized finance at the time of writing. Presently, the largest defi protocol in terms of TVL size is Curve Finance, the decentralized exchange (dex) platform. Today, Curve dominates the pack with $20. 71 billion and a dominance rating of around 9. 67%, according to defillama.com statistics on April 20, 2022.

As far as TVL in defi protocols is concerned, Curve has led the pack for weeks on end, but the liquid staking solution Lido may take the reins soon. Lido’s TVL, at least according to today’s defillama.com metrics, is $18. 97 billion, up 16. 02% over the last 30 days. Lido is a popular tool because it allows users of Ethereum, Terra, Polygon and Polygon to use their staked assets for additional yield.

So if a user decided to bond Terra’s LUNA into the token called BLUNA, they would exchange LUNA for BLUNA to start getting staking rewards. To earn more rewards, BLUNA tokens may also be used in pool to increase the reward. The same can be said about other networks like Ethereum, as Lido’s staked ether (STETH) commands the 18th largest market capitalization out of 13,671 cryptocurrencies. Lido staked solana (STSOL) is the 193rd largest market cap, and BLUNA is the 22nd largest on Wednesday.

While defillama.com notes that Lido’s TVL is $18. 97 billion, it only accounts for four of the blockchains that Lido uses for staking. Polygon is missing from defillama.com’s metrics, and according to Lido’s stats on April 20, 2022, there’s $19,220,700,179 staked among 99,606 stakers. Lido stats show $10.6 billion from Ethereum, $8. 21 billion from Terra, $363 million from Solana, $3.3 million from Kusama, and $13.8 million stemming from the Polygon network.

3.9%, 23.9% APY Depending on Chain Rewards and Skipping Validator Lock-Ups

According to current staking estimates, Lido’s Ethereum staking solution is the lowest with a 3.9% annual percentage yield (APY), while Kusama’s is the highest at 23.9% APY. Lido’s ability to double stake assets is a highlight. However, Lido warns that there are defi liquidity pool providers who will take the reward from Lido.

One particular benefit of Lido is people can skip using a validator lock-up period (although there is an unbonding period) because they can sell their bonded tokens on the open market. This route is not recommended as the user may lose the dex swap fee and approximately 1-2% depending on the value of the bonded token.

Lido Finance is considered a “staking company,” and there are a number of staking companies in the industry. There are many staking companies today, including Kyber Network and Celer Network. However, Lido has a tremendous amount of value today, across five different blockchains, and the recent increase in staked assets has been exponential.

What do you think about the liquid staking solution Lido?

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