Lido's liquid staking protocol presently commands $5.9 billion in TVL, which is more than MakerDAO's $5.89 billion and AAVE's $3.7 billion.
Lido now has the highest TVL of any DeFi protocol. pic.twitter.com/2xsM3lVGVl
— Patrick | Dynamo DeFi (@Dynamo_Patrick) January 1, 2023
According to Lido Finance's website, $5.8 billion worth of ether had been staked as of January 2. At the same time, wagers totaling $23.2 million were placed on Solana, $43.9 million on Polygon, $11 million on Polkadot, and $2.2 million on Kusama.
Using Lido's method, users can access liquid Ether staking without having to commit to the standard 32 ETH threshold.
Staking solutions like these have been in high demand ever since Ethereum transitioned to proof-of-stake, according to blockchain data analytics from Nansen in December.
In its research, The Merge observed the debut of staked ETH, a yield-bearing instrument wholly native to cryptocurrencies, which has since surpassed other collateralized yield-bearing offers.
Lido's fee revenue has been directly proportional to Ethereum Proof-of-Stake (PoS) revenue because it transmits received Ether to the staking protocol.
Release dated September 2022, the MakerDAO, which manages the Maker protocol, saw a decline in income in Q3 of 86% to just over $4 million. Weak loan demand and a lack of liquidations were cited as the causes of the decline.
When compared to major cryptocurrency exchanges Coinbase and Kraken, which held 15% and 8.5% of the cryptocurrency market, respectively, Lido had 31% of the ETH that was staked among DeFi during the same month, according to Nansen in September.
