Staking giant Lido looks to bring services to Solana

Infrastructure provider Chorus One believes they can help Lido corner 25% of all staked SOL.

One of the largest ETH 2.0 and Terra staking services is now looking to expand to other proof-of-stake chains, starting with upstart layer 1 Solana. 

In a proposal today on Lido’s governance forums, crypto infrastructure provider Chorus One laid out a plan to build “a liquid staking token (for now: stSOL) that will accrue staking rewards and represent staking positions with Lido validators on Solana,” similar to Lido’s current interest-accruing stETH token.

Development funding to bring Lido’s services to an additional chain would come from the Lido Ecosystem Grants Organization, a program Lido’s governance kicked off in March. Chorus One’s requested a compensation package including 2,000,000 vested LDO tokens and a revenue-sharing model that would entitle Chorus One to 20% of the revenue from protocol fees that would go to the Lido treasury.

The milestones for Chorus One’s vesting unlocks are notably ambitious, including a 1 year cliff to “capture 2.5% of the staked SOL supply,” as well as 1,000,000 tokens scheduled to begin a one year vesting schedule “when Lido for Solana manages to capture 25% of the staked SOL supply.” The proposal notes that Chorus One is currently the largest SOL staker with $600 million in tokens.

A representative for Lido told Cointelegraph that an expansion could be a boon for the protocol’s income.

“For the Lido DAO, an expansion to liquid staking on Solana could bring with it a similar protocol fee set-up as we’re currently seeing with stETH/liquid staking on Ethereum, whereby a 10% fee on staking rewards is collected and split between node operators and the Lido DAO treasury (e.g. to grow an insurance fund),” they said.

They also noted that the door remains open to expanding to other Proof of Stake chains.

“Lido has a very simple mission – keep Ethereum staking simple, secure and decentralised – and we will look to extend this to other networks where possible,” they said.

Per Lido’s website, the services currently accounts for 256,964 ETH staked (worth over $700 billion) across nearly 5000 addresses earning 7.1% APY, and is the third-largest staking pool currently live per Nansen. While estimates vary, once ETH 2.0 launches, the APY rewards are expected to increase significantly.

Lido’s $LDO token has been on a tear as of late, rising 54% on a 24 hour basis to $2.9 and 216% on the week — a run possibly fueled by another governance proposal that would diversify a portion of the treasury to a group of notable venture capital funds, including Delphi Digital, Digital Currency Group, Three Arrows Capital, and Alameda Research.

Continue reading

Inverse Finance seizes tokens, ships code: Launches stablecoin lending protocol

One of DeFi’s strangest experiments continues to push the envelope in both governance and architecture.

Shortly after culling its community of inactive members, one of decentralized finance’s (DeFi) strangest experiments is launching a new stablecoin lending product.

On Wednesday Inverse Finance revealed the Anchor Protocol, a money market built around DOLA, a protocol-native synthetic stablecoin. Based on “a modified fork of Compound,” in a blog post Inverse Finance founder Nour Haridy compares Anchor to Synthetix, which issues credit in the form of synthetic assets back by overleveraged collateral, and Compound, which issues credit in the form of crypto asset loans also backed by overleveraged collateral.

Ultimately, Haridy sees these models as providing the same utility.

“Lending and synthetic protocols both offer the same service: credit. Anchor brings the gap between them by combining them into a unified borrowing protocol.”

Anchor aims to accomplish this with a unique architecture that always treats the DOLA token as “$1 collateral that can be used to borrow other assets regardless of DOLA’s market conditions or peg.” Users deposit collateral, mint DOLA, and then can use DOLA to take out loans in other crypto assets or simply earn yield on DOLA. 

“For over-collateralized borrowers and leveraged traders, we offer them a one stop shop where they can share their collaterals across their synthetic and token borrowing positions, allowing higher capital efficiency and higher leverage,” says Haridy.

Haridy envisions Anchor will use DOLA for protocol-to-protocol lending similar to Cream’s Iron Bank, for undercollateralized lending (long a prize in DeFi), and for the protocol to “lend itself” credit to pursue yield farming opportunities.

No dead weight

Perhaps more interesting than Inverse’s development at the protocol layer are the moves they made earlier in the week at the governance layer. 

In what may be a DeFi governance first, On Saturday Feb. 20, Inverse community members put forth two governance proposals to seize INV — Inverse’s currently non-transferrable governance token — from inactive community members. On Thursday Feb. 25, the proposals passed, and not everyone was happy with the result.

Haridy says that the timing was intentional — right as Anchor, a protocol that might generate revenue for the DAO, prepares to launch, the community sheds freeloaders. 

“We needed to weed out our dead weight to reclaim some tokens for re-distribution to new active members soon. We also created an INV grants committee with the power to reward contributors and add new members to the DAO. Additionally, when free riders are removed, active members become more incentivized to contribute because they get a larger piece of the pie.”

While the unprecedented move may seem harsh, it’s also simply applying to governance the kind of aggressive style that put Inverse Finance on the map in the first place. By forcing token holders to participate under the threat of seized tokens, it’s helped with the development of Anchor as well. 

“This is a collaborative effort among many DAO members starting from ideation to development to internal reviews and testing,” says Haridy.

The next step for Inverse will be getting Anchor off the ground, and preparing for a world in which INV becomes tradable. Haridy says there’s a growing consensus in the community for tradability. This would mean that the DAO would give up the power to seize tokens, which could alter Inverse’s community landscape.

Haridy, however, seems unfazed by the looming shifts, already preparing the next innovation.

“This will significantly change the existing incentives and may reduce participation. Fortunately, there’s some work on a new alternative governance model that’s been happening internally to address this problem.”

Continue reading

Jigstack DAO Acquires Icorating.com Platform to Strengthen Its Token Launch Pad Lemonade

Jigstack DAO Acquires Icorating.com Platform to Strengthen Its Token Launch Pad LemonadeA decentralized finance (defi) protocol announced that it officially acquired an initial coin offering (ICO) listing platform. Jigstack, who bought icorating.com, will migrate all the platform’s assets to its Lemonade’s solution. Jigstack’ Direct Email Database on Icorating.com According to the announcement, the defi protocol, which acts as a decentralized autonomous organization (DAO), bought the website […]
Continue reading

Decentraland celebrates 1 year anniversary with virtual party

The virtual world is celebrating in style with “live” DJ sets and a new club reveal

User-owned virtual world Decentraland is celebrating its one-year anniversary true to form with a virtual party open to all. 

“Relive the past 12 months of events, competitions, exhibitions, gatherings and more with messages from the community and the results of the #DCLFilmClub promo video contest screened for all,” read the party’s announcement blog post.

Attendees will receive a Proof Of Attendance Protocol NFT, and will get the first look at The White Rabbit, an in-game club. Community members are also pitching in on the effort, with one land rental service offering legendary item giveaway to celebrate.

DJ and crypto aficionado RAC posted on Twitter that he’d be performing a “live” DJ set:

While the project has been open to investors and early supporters since 2019, the virtual world welcomed the wider world in February of last year. The project found immediate success, quickly selling $1 million in virtual land. Since then, the world has become home to numerous NFT art galleries, casinos, and other attractions. 

More recently, new features such as a virtual casino, layer-2 scaling via Polygon (nee Matic), and voice chat sent native tokens LAND and MANA soaring in early 2021.

The platform also frequently makes headlines for the high-priced sums its virtual plots of lands can fetch on the open market. Digital land is a particularly hot commodity for NFT investors, and LAND is no exception, often making the news for six-figure sales.

It’s been a similarly strong year for the wider Metaverse. Multiple digital worlds have made strides in functionality, playerbases, and interoperability — enough so that Fortnite game studio founder Tim Sweeney has said the tech is “going places.”

Players who are interested in the festivities can hop in now and follow a trail of confetti to the party, where RAC currently has the stage.

Continue reading

No-loss lottery PoolTogether cracks 50 million in deposits after token airdrop

The self-styled “savings game” is hoovering user deposits, leading to meaty lottery payouts

No-loss lotteries appear to have found a snug product-market fit. 

Just a few days after the airdrop of their governance token, POOL, the self-styled “savings game” PoolTogether has cracked $50 million in total value locked with ease, currently sitting above $51 million spread between DAI, USDC, UNI, and COMP lottery pools.

PoolTogether aptly ‘pools’ user funds and deposits them into decentralized finance savings protocols, using the interest as prizes for randomly-selected winners and returning the initial funds to buyers — thus creating a “no-loss” lottery.

While the project stalled below $10 million in total value locked for months, growth has been explosive ever since the POOL governance token airdrop on February 17. According to a Tweet from the team, a day ago the project had $34 million in TVL — it has since grown 33%.

PoolTogether founder Leighton Cusack points to the distribution model for POOL as a partial explainer for the protocol’s growth.

“As part of the initial decentralization, 5% of total POOL supply (500,000 tokens) were allocated to be distributed automatically to all no loss prize pool depositors over the next 14 week,” he said in an interview with Cointelegraph.

The distribution program, one which is conceptually similar to liquidity mining, is part of a larger effort to “get the token into the hands of users.” Cusack says that of the 1.5 million tokens airdropped on the 17th, (15% of the total supply), 600,000 have been claimed.

Another reason for the growth is entirely organic, however: the more depositors, the more appealing the prize pool.

“The prizes are MUCH larger than they have ever been. Right now the protocol is on track to aw1ard over $60,000 in prizes in the next 7 days. So the higher prizes is attracting more people to deposit,” he said.

The next step for the protocol will be to build on the promising growth. Cusack says that integrating with more savings protocols and moving to a layer-2 in an effort to duck Ethereum’s rising gas fees are priorities, but ultimately those decisions are now out of his hands.

“Since the protocol is now decentralized though, it’s really up to members of the community to drive that process. There is a strong community around the protocol already and if you anyone wants to get involved just hop into the Discord.”

Continue reading