Crypto infrastructure provider, Chorus One, proposes building a liquid staking token that will result in getting staking rewards and staking positions with Lido validators on the Solana blockchain. Chorus One is currently the largest SOL staker with over $600 million in tokens.
Lido Staking Service Coming to Solana Blockchain
The Chorus One team has proposed a grant to the Lido DAO for building a Lido-operated liquid staking protocol for the Solana blockchain. This will result in adding a large recurring revenue stream to the Lido DAO while delivering value to LDO holders.
The Stake deposited to the Lido contract on the Solana blockchain will be distributed to these validators similar to the Lido Ethereum liquid staking solution.
Meanwhile, the Lido node operators, as well as parameters such as the fee, etc. will be controlled via the governance of LDO holders on Ethereum.
Initially, the governance decisions will be carried out via a multisig controlled by Lido stakeholders on Solana. This will later be upgraded to a fully automated and trust-minimized process as the cross-chain protocol mature.
Lido’s Expansion to Other Networks
Meanwhile, Chorus One’s compensation package includes 2,000,000 vested LDO tokens and a revenue-sharing model that would lead Chorus One to 20% of the revenue from protocol fees going towards the Lido treasury.
The announcement release read:
“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.”
“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).”
Lido’s $LDO token is currently trading at $2.70 and is up by 9.1% on a 24-hour period.