Author(s): @IvanM Tags: asset-onboarding Asset Name: Lido Staked SOL Asset Code: stSOL Submission Date: 2022-08-29 Ratification Date: 2022-09-20 Status: Active Forum URL: https://forum.jetprotocol.io/t/asset-onboarding-application-stsol-lido/1054 If endorsed by Jet Community Member, list here: @MJSchobert
This is a proposal to list Lido’s stSOL on Jet Protocol and build a partnership between the two.
Member of the core team.
Lido stSOL is a non-custodial liquid staking protocol built on Solana. stSOL has currently onboarded 15 validators to date. The goal of Lido and liquid staking is to make Solana more decentralized and secure.
As stSOL is not rebasing (increasing balance) the value of stSOL will increase over time relative to SOL. This makes stSOL a best in class collateral asset to borrow against. This allows Jet users to take a long position against SOL while also giving users flexibility to leverage additional assets across DeFI.
Lido proposes initially seeding this pool with at least 25,000 LDO per month for at least the first 3 months if this proposal passes and after stSOL is listed.
Technical Risk: Lido stSOL has been audited by both Neodyme and Bramah. The reports and overview can be found here.
Counterparty Risk: Lido is permissionless and non-custodial. People cannot face direct counterparty risk through our protocol.
Liquidity Risk: Even though stSOL is backed by SOL, there are still elements of liquidity risk. With the withdrawal timing, liquidation events would require just in time liquidity that could be a risk vector. However, after, the SOL can always be redeemed from the contract by burning stSOL.
Price Feed Risk: stSOL price is directly linked to Sol price. In order to maintain the relative peg as the price of stSOL increases over time against SOL we use Pyth on-chain feeds.
1. Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).
Solana is the native ecosystem for $stSOL.Lido for Solana not only makes it very easy to stake but also provides further utility through stSOL.A SOL token holder connects their wallet to https://solana.lido.fi and deposits their tokens into the Lido program. They immediately receive stSOL tokens that represent a share of the total pool. Every user’s tokens are held in a pool controlled by the Lido program.
Vasiliy Shapovalov and Konstantin Lomashuk, both are currently Lido DAO members.
3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).
4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?
The way of issue $stSOL is throughout the minting mechanism.
$stSOL is entirely distributed among the users.
Lido applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO treasury, and Lido on Solana developers. This fee cut is applied to incentivize Lido maintainers. To incentivize sustainable management of the Lido ecosystem, half of the fee split (=5%) is given to the node operators, 1% to developers, and 4% to the DAO treasury which can further utilize it in avenues like grants, insurances, and value accrual to LDO. $stSOL - Fees
Yes, Lido is Open Source.
Lido Staked SOL
$stSOL is a liquid staking token that is redeemable for SOL that has been staked with Lido.
The goal of Lido and liquid staking is to make Solana more decentralized and secure.
6. Please provide all Smart Contract address. If the project is open source, detail how the Smart Contracts are implemented.
Mint Authority 8kRRsKezwXS21beVDcAoTmih1XbyFnEAMXXiGXz6J3Jz
DEX: Aldrin, Orca, Serum, Raydium & more
3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).
24h Trading Vol: $55,5K
7 Day Trading Vol: $521,2k
5. How often does the asset drop significantly in price? Please provide a link to the price history.
$stSOL price is attached to $SOL price. See SOL price. The price of both has decrease significantly due to market conditions since November 2021.
7. For algorithmic stablecoins only: Please provide details on the risks associated with the design.
8. For wrapped assets only: Which bridges are used? Are they custodial or non-custodial? Are they audited?
stSOL is the liquid token that represents your share of the total SOL pool deposited with Lido. As soon as you delegate to the pool, you receive the newly minted stSOL. Over time, as your SOL delegation accrues staking rewards, the value of your stSOL appreciates.
3. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?
$stSOL is expected to increase as long as Lido reaches more users on Solana. The burning /issuance mechanism relies on users stakes or unstake SOL on Lido.
There is no $stSOL staking mechanism provided by Lido. Despite this, users can acts as a $stSOL liquidity providers on different existing protocols such as Aldrin, Orca and Mercurial.
6. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?
Since Lido is made available by DeFi Ltd and this legal entity is hosted in Cayman Islands, we can assume that $stSOL is issued under the Commonwealth Jurisdiction.
5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.
6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.
Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
The poll below is solely for signaling purposes to showcase the sentiment of the community.