- Lido surpasses MakerDao as it reaches $5.9 billion in TVL.
- MakerDao faces a decline in income in its third quarter of 2022.
- Lido merges the biggest staking provider with 31% of staked ETH.
Lido now has the highest TVL of any DeFi protocol. pic.twitter.com/2xsM3lVGVl
— Patrick | Dynamo DeFi (@Dynamo_Patrick) January 1, 2023
According to DeFilLama, the total value locked (TVL) in Lido is currently at $5.9 billion, surpassing MakerDAO, which is currently at $5.89 billion. This marks a significant milestone for Lido, as it has become the most valuable DeFi project in terms of TVL.
Additionally, Andrew Thurman, head of content at blockchain analytics startup Nansen, also highlighted the increasing use of stETH as collateral and for yield farming strategies. He continued by saying that investors are buying ether and its derivatives because of the possibility of profit and diversification.
Moreover, Lido’s elevated value is a direct result of the company’s efforts to create a risk-free, money-making environment for its users. The protocol leverages the security features of the Ethereum blockchain by letting users stake their assets in exchange for liquidity and rewards via a decentralized staking pool system.
On the other hand, the organization in charge of overseeing the Maker Protocol, saw a sharp decline in income as expenditures remained high and loan demand declined in the third quarter of 2022.
In a tweet on October 13 by Johnny TVL, a Messari analyst and co-author of The State of Maker Q3 2022, the decentralized autonomous organization (DAO) reported an 86% decrease in income from the previous quarter, falling to a little over $4 million in Q3.
Later that month, Lido was the biggest Merge staking provider, with a share of 31% of the staked ETH, followed by a fifth unnamed set of validations, which held 23% of the staked ETH.