As per the latest reports, Lido is aiming to expand to spread and expand its services to other chains. The platform has confirmed that for expansion, it has chosen other proof-of-stake consensus protocol chains. Therefore, the first chain it is has chosen to expand its services through is Solana (SOL), an upstart layer 1 solution.
Lido currently exists as one of the largest Terra staking and ETH 2.0 services that have gained enormous adoption and success ever since its launch.
Following the announcement from Lido, Chorus One has proposed creating tokens used for liquid staking. Chorus One is a famous cryptocurrency infrastructure provider that is always interested to provide its input for Lido’s governance.
According to Chorus One, the liquid staking token “stSOL” will be serving two major utilities. The first one would be to act as support for Lido validators while representing staking positions. The entire process will be carried out through Solana’s proof-of-stake protocol.
The other utility would be the users receiving the stSOL tokens in the form of rewards for their contribution in Solana’s proof-of-stake protocol. Once introduced, it would be the same mechanism that Lido practices in terms of stETH token, which is used for interest generation.
The platform has confirmed that the Ecosystem Grants Organization of Lido will be responsible for generating funds for the new protocol. The governance of Lido recently initiated this program back in March of 2021.
In the proposal, Chorus One has requested 2,000,000 vested LDO tokens in the form of the compensation package. On top of that, Chorus One has also presented a model with Lido for revenue sharing. According to the model, Chorus One would be entitled for receiving 20% of the revenue.
The revenue quoted by Chorus One was from the protocol fees that the Lido treasury would be receiving from the protocol.
On top of that Chorus One has also laid out milestones for its work in the vesting for Chorus One. A look into the milestones proposed by Chorus One shows that the platform is very ambitious and keen to demonstrate its capabilities.
The firm has revealed that for the milestones, there will be a 1-year cliff for the SOL supply that will be staked and the capture rate would be 2.5%. The firm has also proposed that in order to commence the 1-year vesting schedule, it would require 1,000,000 tokens.
In the proposal notes, Chorus One has claimed that it is currently the largest staker of SOL. The proposal reveals that so far $600 million worth of tokens have been staked by Chorus One on SOL protocols.
The representatives at Chorus One as well as Lido are expecting that they will be able to generate hefty profits and income from the new protocol.