The post Lido Token Holders Discuss Whether to Leave Polygon appeared on BitcoinEthereumNews.com.

A Lido community member proposed exiting Polygon due to lackluster ROI and roadmap uncertainy. Lido token holders are discussing whether to exit Polygon just days after they voted to leave Solana. A Lido community member proposed exiting Polygon due to concerns over lackluster revenue, brand risk and Polygon’s uncertain roadmap. With Lido voting to leave Solana as projected revenue didn’t offset development and marketing costs, an exit from Polygon would mean the largest liquid staking platform would operate solely on Ethereum. “I am pushing for Lido to be a completely native ETH,” said Kentie, the proposal’s author, replying to a comment. Lido is the largest liquid staking protocol with $13.9B in Total Value Locked, according to DeFiLlama. Lido tokenizes users’ staked funds into “st-token” assets, which are pegged to the underlying staked asset in a one-to-one basis. This makes the original staked funds indirectly liquid, to be used in a DeFi ecosystem. Lackluster Revenue Kentie argued that over the past 12 months, Lido has reportedly spent over 2.1 million LDO tokens (approximately $3.42 million) in incentives and compensation on its Polygon operations. In contrast, the platform’s yearly revenue is estimated at just $166,863, resulting in a Return on Investment that appears unimpressive. The proposal adds that the compensation structure for Shard Labs, the firm responsible for Lido on Polygon, is expensive. As per the post, each 1% of staked MATIC generates a yearly revenue of $41,991, whereas Shard Labs’ one-time compensation is 150,000 LDO tokens, equivalent to around $240,000. Also, following a recent technical upgrade for Lido on Polygon, a bug that stopped withdrawals for 25 days was discovered. Although the issue was resolved without any negative publicity, the situation highlighted the potential reputational risk the platform could face from similar incidents. Polygon Roadmap Uncertainty Polygon recently unveiled a roadmap…

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Filed under: News - @ October 21, 2023 2:08 am