Mellow Finance to Help Lido Hold On to its Place as Largest DeFi Protocol
The post Mellow Finance to Help Lido Hold On to its Place as Largest DeFi Protocol appeared on BitcoinEthereumNews.com.
The liquid restaking protocol could help boost Lido’s stETH market cap. Restaking wars are heating up as Mellow Finance’s launch this week is helping the original staking protocol, Lido Finance, wrestle market share from rising giant, EigenLayer. Mellow Finance is the liquid restaking protocol for Symbiotic, an EigenLayer competitor, and is now a part of the Lido Alliance, an initiative designed to establish stETH as a foundational restaking asset. Mellow’s total value locked grew to $115 million just one day after its June 11 launch. The restaking service raised a $5.8 million seed round from venture capital firm Paradigm and the Lido founders’ investment firm Cyber.Fund. Mellow Finance introduces a “modular infrastructure” for creating Liquid Restaking Tokens (LRTs), offering depositors a range of permissionless vault options. This setup allows users to choose their own risk levels when restaking. Within 5 hours of its launch, which was also on Tuesday, Symbiotic depositors reached the platform’s initial cap of 41,290 wstETH, or $173 million. “Mellow enables depositors more flexibility regarding their desired level of exposure to risk while still benefiting from the liquidity of staked assets,” read the documentation. Lido’s DeFi Breakthrough Launched in December 2020, Lido was the breakout sensation in decentralized finance (DeFi), allowing users to stake cryptocurrency on Ethereum, while receiving a tradable token called stETH, representing their deposits. This proved extremely popular and propelled Lido to become the largest DeFi protocol on Ethereum, currently holding $33 billion worth of deposits. However, Lido has faced challenges with a declining market share as many users have shifted assets over to EigenLayer, a protocol that allows users to restake Ethereum’s native ETH token to help secure other networks. EigenLayer amassed $18 billion worth of deposits since opening to investors last year. Lido’s TVL has declined 13% after peaking at $39.8 billion…
Filed under: News - @ June 12, 2024 10:16 pm