Decentralized finance protocol Lido has unveiled a brand new staking product geared toward institutional traders.
On August 2, Lido (LDO) introduced the launch of Lido Institutional, a liquid staking answer particularly designed to fulfill the wants of custodians, asset managers, exchanges and different institutional entities.
“The introduction of Lido Institutional underlines Lido’s continued dedication to offering an distinctive staking answer aligned with the excessive requirements of custodians, asset managers, exchanges and extra,” Lido mentioned in a put up on X.
Security and deep liquidity
Lido, the platform behind Ethereum (ETH)’s main liquid staking token Lido staking Ether (stETH), appears to increase its dominance with the brand new answer. The aim is to supply institutional traders with entry to Lido’s strong safety, deep liquidity and staking rewards.
Lido Institutional gives diversified counterparty publicity, permitting individuals to earn staking rewards by a diversified set of greater than 100 node operators.
Learn extra: Vitalik Buterin unveils a serious overhaul of Ethereum staking to enhance decentralization
A number of liquid staking and redrawing protocols, together with Ether.fi and Renzo, have emerged since Ethereum’s transition from a proof-of-work to proof-of-stake blockchain to problem Lido. Nonetheless, Lido continues to dominate because the ecosystem’s largest staking protocol in DeFi.
In accordance with knowledge from DeFiLlama, crypto deposits on Lido at present exceed $31 billion. Nonetheless, the entire worth of the protocol peaked in March at over $39 billion.
This got here as the value of Ethereum rose above $4,000 for the primary time since reaching an all-time excessive above $4.8k in November 2021. Most altcoins additionally rose as crypto skilled a notable enhance in institutional visibility.
steTH dominance
In the meantime, Lido’s sETH is the biggest and most generally used collateral token in decentralized finance at greater than $10 billion to this point.
Custody options that supply native sETH integrations embrace Fireblocks and Taurus, whereas conventional buying and selling and asset administration platforms that present entry embrace Matrixport and Swissborg.
You may additionally like: Taurus, Lido accomplice to permit sETH consumer entry