The merge, which will bring PoS consensus to #Ethereum, is approaching.
One of the beneficiary protocols is @LidoFinance ( $LDO ) ๐ฅ
Here's why ๐งต;
One of the beneficiary protocols is @LidoFinance ( $LDO ) ๐ฅ
Here's why ๐งต;
1/x
@LidoFinance is a protocol for liquid staking that offers stakers ($ETH)ย with a liquid derivative of their asset ($stETH)
Stakers receive not only staking reward but also a fungible token that can be used on other Defi protocols.
@LidoFinance is a protocol for liquid staking that offers stakers ($ETH)ย with a liquid derivative of their asset ($stETH)
Stakers receive not only staking reward but also a fungible token that can be used on other Defi protocols.
2/x
To get liquid derivative of staking asset, user can mint $stETH on @LidoFinance or swap $ETH on dex (@CurveFinance, @1inch)
Typically, a 2-3% discount is applied to dex swaps. Therefore, users should swap instead of mint.
Source: @1inch
To get liquid derivative of staking asset, user can mint $stETH on @LidoFinance or swap $ETH on dex (@CurveFinance, @1inch)
Typically, a 2-3% discount is applied to dex swaps. Therefore, users should swap instead of mint.
Source: @1inch
3/x
Theoretically, 1 $stETH could be redeemed for 1 $ETH but after 6 to 12 months after the Merge.
If users need to return their $ETH before it is redeemable, they can exchange $stETH on the dex, and this is not 1:1.
Theoretically, 1 $stETH could be redeemed for 1 $ETH but after 6 to 12 months after the Merge.
If users need to return their $ETH before it is redeemable, they can exchange $stETH on the dex, and this is not 1:1.
4/x
How big could @LidoFinance grow? ๐
@LidoFinance is the largest liquid staking protocol with 32% of total staked $ETH is from @LidoFinance
Total staked $ETH on beacon chain is 13.4m
Staked $ETH with @LidoFinance is ~4.3m
Ref: beaconcha.in
How big could @LidoFinance grow? ๐
@LidoFinance is the largest liquid staking protocol with 32% of total staked $ETH is from @LidoFinance
Total staked $ETH on beacon chain is 13.4m
Staked $ETH with @LidoFinance is ~4.3m
Ref: beaconcha.in
6/x
Total revenue has been increasing since early July 2022 as well
The revenue stream of @LidoFinance is a 10% cut from staking rewards. (can be changed via governance)
However, this revenue IS NOT SHARED with $LDO holder.
Ref: tokenterminal.com
Total revenue has been increasing since early July 2022 as well
The revenue stream of @LidoFinance is a 10% cut from staking rewards. (can be changed via governance)
However, this revenue IS NOT SHARED with $LDO holder.
Ref: tokenterminal.com
8/x $LDO Tokenomics
$LDO has a total of 1 billion tokens. The allocation is highly concentrated on insiders, as ~75% of tokens are allocated to teams and investors. ๐ผ
$LDO has a total of 1 billion tokens. The allocation is highly concentrated on insiders, as ~75% of tokens are allocated to teams and investors. ๐ผ
9/x
However, most $LDO tokens are unlocked.
26.6% Locked, without a cliff unlock
Link:token.unlocks.app
However, most $LDO tokens are unlocked.
26.6% Locked, without a cliff unlock
Link:token.unlocks.app
10/x Linear Vesting ๐
By the end of this year, linear unlock will be slower.
By the end of this year, linear unlock will be slower.
11/x
Let's see if $LDO is evaluated by discounted cash flow model.
Updated from @BanklessHQ
Assumption:
Discount Rate: 40%
Terminal Growth: 2%
Circ. Supply: 733,985,803
Total Supply: 1,000,000,000
Annual Stake Growth: 40%
$ETH Price Growth: 50%
Let's see if $LDO is evaluated by discounted cash flow model.
Updated from @BanklessHQ
Assumption:
Discount Rate: 40%
Terminal Growth: 2%
Circ. Supply: 733,985,803
Total Supply: 1,000,000,000
Annual Stake Growth: 40%
$ETH Price Growth: 50%
12/x
Staking growth rate might get increasing YoY as the PoS is coming.
If the bull market occurs next year, the $ETH price might get even higher than 50%, but to be conservative, NFA.
Staking growth rate might get increasing YoY as the PoS is coming.
If the bull market occurs next year, the $ETH price might get even higher than 50%, but to be conservative, NFA.
13/x
Discounted cash flow can be calculated as follows:
Discounted cash flow can be calculated as follows:
14/x
According to this model, the intrinsic value of $LDO will be $4.04 or $3.76 (if diluted).
However, FDV of $4b is still not in the top 20 crypto market cap.
According to this model, the intrinsic value of $LDO will be $4.04 or $3.76 (if diluted).
However, FDV of $4b is still not in the top 20 crypto market cap.
15/x
In terms of the P/E ratio competitive landscape ๐
@CurveFinance : 374x
@AaveAave : 81x
@LidoFinance : 61x
@SushiSwap : 24x
Lido's P/E of 61x is fairly high, however, there are still protocols with a higher P/E, such as Curve and Aave.
Ref: @tokenterminal
In terms of the P/E ratio competitive landscape ๐
@CurveFinance : 374x
@AaveAave : 81x
@LidoFinance : 61x
@SushiSwap : 24x
Lido's P/E of 61x is fairly high, however, there are still protocols with a higher P/E, such as Curve and Aave.
Ref: @tokenterminal
16/x
Keep in mind that @LidoFinance has no revenue sharing to $LDO holder and there is no sign that revenue sharing will occur soon. ( not the same as Fee Switch on @Uniswap ).
Nevertheless, anything is possible in the crypto space.
Keep in mind that @LidoFinance has no revenue sharing to $LDO holder and there is no sign that revenue sharing will occur soon. ( not the same as Fee Switch on @Uniswap ).
Nevertheless, anything is possible in the crypto space.
17/x
If you've enjoyed the thread thus far, please go to the first tweet and RT ๐
Follow @Token_Unlocks for Tokenomics-related news and updates. ๐โค๏ธ
If you've enjoyed the thread thus far, please go to the first tweet and RT ๐
Follow @Token_Unlocks for Tokenomics-related news and updates. ๐โค๏ธ
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