According to DefiLlama data, Lido protocol has the highest total locked value (TVL) after Curve. You can see the TVL ranking for April 16, 2022 in the table below.


About $10 billion, or about 3 million Ethereum tokens, have been invested in the DeFi protocol Lido in anticipation of the successful completion of the long-awaited Ethereum transition. Targeted later this year, the Ethereum software change called “Merge”, which has been worked on for years, is expected to significantly reduce energy use and improve performance.

Trading on Lido is done through a fairly common crypto practice known as “staking”, which gives holders a way to earn passive income without having to sell their tokens.

Staked coins are used to help verify transactions and secure the network in return for rewards, based in part on the amount of new tokens minted and fees collected. The staking app is popular with users of leading exchanges such as Coinbase, Kraken, and Binance, which have around 2.5 million Ethereum stakes on their platforms. It can be understood from the image below that the amount of Ethereum staked on Lido has exceeded 10 billion dollars.

stake ether terra

Lido, a decentralized staking project launched in December 2020, has managed to outperform other major industry players by offering Ethereum holders an additional income (stETH). This is a token called stETH, which is pegged to Ethereum's value and can be used in other DeFi applications. With this token, you can earn rewards by providing liquidity in money market protocols, or you can increase your stake rewards by borrowing against stETH and buying even more Ether.

According to Nansen data, there are currently over 700,000 stETHs on decentralized lending project Aave. Depending on how much risk a stETH holder is willing to take, the rewards gained by staking borrowed Ether against stETH on Aave could theoretically be unlimited. But as we mentioned, it depends on the risk you take.

With leveraged staking rewards on the Lido protocol, you can increase your annual APY rate to well beyond 3.9%, but big wins never come without risk. Gordon Liao, chief economist at Uniswap Labs, also warns investors that "stETH's value may remain lower than Ethereum if Ethereum's expected update does not go as expected."