Lido Finance seems to have been one of the protocols that benefited the most from the Merge upgrade on Ethereum. Lido Finance currently ranks top among DeFi protocols by its total locked value (TVL). According to data shared by DeFiLlama, Lido’s liquid staking protocol outperformed both protocols when compared to MakerDAO and AAVE. Lido’s TVLs were reported at $5.9 billion, while MakerDAO and AAVE TVLs were reported at $5.89 billion and 3.7 billion, respectively.
According to the official website of Lido Finance, $5.8 billion has been staked as of January 2. However, Lido Finance currently has 23.3 million Solana (SOL), 44 million Polyhon (MATIC) and 11.2 Polkadot (DOT) and 2.2 million Kusama (KSM) staked. Lido also allows users to stake liquid ETH without having to commit to the traditional minimum of 32 ETH.
Blockchain data analytics firm Nansen revealed last December that staking solutions have been in high demand since Ethereum’s Merge upgrade. In November 2022, Lido announced that it had collected $1 million in transaction fees every day throughout October 2022.
According to MakerDAO’s Messari statement released last month, the reasons for the decline include several liquidations and weak loan requests. MakerDAO announced in its revenue statements that it had lost more than 4 million in the third quarter of 2022, with a loss of 86 percent. At the same time, according to Nansen’s data, Lido Finance held the most staked amount of ETH in DeFi with 31 percent. Lido’s 31% percent also surpassed Coinbase and Kraken exchanges. Coinbase’s staked amount of ETH was 15 percent, while Kraken’s was 8.5 percent.