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Footprint Analytics is a comprehensive blockchain data analytics platform that simplifies analysis and community management for sustainable
Footprint AnalyticsAfter its Airdrop, Where Does Blur Stand in the Market?
One year ago, the volume of NFT transactions going through aggregators began to snowball, even exceeding the volume going directly through marketplace platforms at times. While aggregator usage declined from October to January, Blur.io has since exploded in popularity in 2023, even engaging in a public confrontation with OpenSea over royalties. This month, Blur overtook OpenSea in transaction volume and had a massive airdrop event.Blur Aggregator Trading Volume vs. Marketplaces Footprint Anal...
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Author: Stella L (stella@footprint.network) Footprint Analytics is excited to announce that Growthly, our intuitive no-code viral Quest solution, is now open to all Web3 projects! For a** limited time**, we’re offering free access to Growthly’s Quest H5, SDK, and mini apps to help projects boost user acquisition and retention through engaging, gamified experiences.Why Growthly?Growthly has already demonstrated remarkable success in the Web3 space, powering projects like Ton.AI to achieve over...
Footprint AnalyticsWhat is the Element NFT marketplace and NFT aggregation?
Oct. 2022, Vincy Data Source: Footprint Analytics — Element NFT Marketplace NFT marketplace Element was launched on July 1, 2021 as a solution to the problem of fluctuating interest rates on most DeFi programs and the liquidity of the principal after user deposits. On August 15, the platform officially launched its version** **2.0, which faces a different sector than the original version. Now, the platform calls itself the first community-driven decentralized NFT aggregation marketplace. This...
Footprint Analytics is a comprehensive blockchain data analytics platform that simplifies analysis and community management for sustainable
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Earn 12% to 14% APR for staking ETH in the Lido protocol.
Feb. 2022, Vincy
Data Source: Footprint Analytics — Lido Dashboard
Lido is a platform built on Ethereum 2.0’s Beacon Chain. Users are rewarded with staking without locking up ETH and receive 1:1 in the token stETH, which they can further employ or leverage.
In just 3 months, Lido has reached a record high TVL of $13.98 billion and jumped ahead of AAVE and Convex Finance to rank #3 among DeFi protocols.
Let’s break down whether Lido, with its rapid TVL growth, is a platform worth using.
Lido’s business is a staking pool service for PoS blockchains, currently supporting Ethereum 2.0, Terra, Solana and Kusama. According to Footprint Analytics, as of March 1, Lido’s TVL was at a record high of $13.98 billion, with Terra accounting for the largest share (56%), followed by Ethereum (41%).
By supporting these 4 blockchains, Lido can integrate many header protocols and issue token derivatives of the corresponding blockchains to provide liquidity to the equity holders’ assets. Users can stake ETH, SOL, LUNA and KSM to get the same percentage of Token stETH, stSOL, stLUNA and stKSM, while also receiving an APR of 4.5% to 18%.
Lido also issues the native Token LDO, which is priced at $2.08 as of March 1, a lower price compared to the four tokens mentioned above. LDO is mainly used for voting and governance, and is not on a larger decentralized exchange, so the overall price trend is not proportional to Lido’s TVL.
This differentiates Lido from protocols such as MakerDAO and Liquity. For example, MakerDAO rewards DAI for depositing ETH, while Lido requires staking tokens such as ETH, SOL and Luna to receive a derivative token at the same price, which enjoys a decent annualized return and is not affected by the LDO price of the native token.
If you want to participate in Ethereum 2.0 independently, you need to staking 32 integer multiples of ETH, which is very unfriendly for retail investors. Lido is more user-friendly in terms of the number of staking, as users can stake any amount of ETH to participate in Ethereum 2.0.
As of March 1, the total number of ETH staked is 1.98 million. Let’s take pledging ETH as an example and analyze how to earn more on Lido.
Users staking any amount of ETH get 1:1 in stETH, and can earn 4.5% APY. By comparison on AAVE, depositing ETH generates 0.2% APR.
Users can turn otherwise interest-bearing stETH asset certificates into liquidity and earn more by participating in other DeFi protocols such as Curve, AAVE and Convex Finance.
Users can earn approximately 3% APY by investing stETH in Curve.
The proceeds earned on Curve can also be placed on the Convex Finance to earn again. After depositing stETH into Curve to get LP, users can deposit it into the steth pool of Convex Finance to earn about 5.1% APR.
In summary, users can stake any amount of ETH on the Lido platform for use in other DeFi platforms to earn 12% to 14% APR, which is a significant amount of revenue for users. Curve and Convex Finance are the top 5 protocols on the network, which are not only risk-controlled, but also have no liquidation risk and are completely single-coin staking models.
Strengths:
User-friendly
Flexible for staking to an external contract for a higher APY
Single currency staking model
Weaknesses:
Rebasing mechanism
Lido is a platform built on Ethereum 2.0 Beacon Chain, where tokens staking by users are raised and then stored on the Beacon Chain. It has a reward and penalty mechanism. When a rebase occurs, the supply of the token is increased or decreased algorithmically, based on the staking rewards (or slashing penalties) in the Ethereum chain. Rebase happens when oracles report beacon stats.
Earnings are not stable
The balance of stETH is updated every day at 24:00 UTC, and if the balance of stETH increases, a certain amount of reward will be given, and if the balance of stETH decreases, a certain amount of Token stETH will be lost. The two are calculated separately.
Gas fees on Ethereum are also a cost consideration for small-amount users
This piece is contributed by the Footprint Analytics community.
The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.
Earn 12% to 14% APR for staking ETH in the Lido protocol.
Feb. 2022, Vincy
Data Source: Footprint Analytics — Lido Dashboard
Lido is a platform built on Ethereum 2.0’s Beacon Chain. Users are rewarded with staking without locking up ETH and receive 1:1 in the token stETH, which they can further employ or leverage.
In just 3 months, Lido has reached a record high TVL of $13.98 billion and jumped ahead of AAVE and Convex Finance to rank #3 among DeFi protocols.
Let’s break down whether Lido, with its rapid TVL growth, is a platform worth using.
Lido’s business is a staking pool service for PoS blockchains, currently supporting Ethereum 2.0, Terra, Solana and Kusama. According to Footprint Analytics, as of March 1, Lido’s TVL was at a record high of $13.98 billion, with Terra accounting for the largest share (56%), followed by Ethereum (41%).
By supporting these 4 blockchains, Lido can integrate many header protocols and issue token derivatives of the corresponding blockchains to provide liquidity to the equity holders’ assets. Users can stake ETH, SOL, LUNA and KSM to get the same percentage of Token stETH, stSOL, stLUNA and stKSM, while also receiving an APR of 4.5% to 18%.
Lido also issues the native Token LDO, which is priced at $2.08 as of March 1, a lower price compared to the four tokens mentioned above. LDO is mainly used for voting and governance, and is not on a larger decentralized exchange, so the overall price trend is not proportional to Lido’s TVL.
This differentiates Lido from protocols such as MakerDAO and Liquity. For example, MakerDAO rewards DAI for depositing ETH, while Lido requires staking tokens such as ETH, SOL and Luna to receive a derivative token at the same price, which enjoys a decent annualized return and is not affected by the LDO price of the native token.
If you want to participate in Ethereum 2.0 independently, you need to staking 32 integer multiples of ETH, which is very unfriendly for retail investors. Lido is more user-friendly in terms of the number of staking, as users can stake any amount of ETH to participate in Ethereum 2.0.
As of March 1, the total number of ETH staked is 1.98 million. Let’s take pledging ETH as an example and analyze how to earn more on Lido.
Users staking any amount of ETH get 1:1 in stETH, and can earn 4.5% APY. By comparison on AAVE, depositing ETH generates 0.2% APR.
Users can turn otherwise interest-bearing stETH asset certificates into liquidity and earn more by participating in other DeFi protocols such as Curve, AAVE and Convex Finance.
Users can earn approximately 3% APY by investing stETH in Curve.
The proceeds earned on Curve can also be placed on the Convex Finance to earn again. After depositing stETH into Curve to get LP, users can deposit it into the steth pool of Convex Finance to earn about 5.1% APR.
In summary, users can stake any amount of ETH on the Lido platform for use in other DeFi platforms to earn 12% to 14% APR, which is a significant amount of revenue for users. Curve and Convex Finance are the top 5 protocols on the network, which are not only risk-controlled, but also have no liquidation risk and are completely single-coin staking models.
Strengths:
User-friendly
Flexible for staking to an external contract for a higher APY
Single currency staking model
Weaknesses:
Rebasing mechanism
Lido is a platform built on Ethereum 2.0 Beacon Chain, where tokens staking by users are raised and then stored on the Beacon Chain. It has a reward and penalty mechanism. When a rebase occurs, the supply of the token is increased or decreased algorithmically, based on the staking rewards (or slashing penalties) in the Ethereum chain. Rebase happens when oracles report beacon stats.
Earnings are not stable
The balance of stETH is updated every day at 24:00 UTC, and if the balance of stETH increases, a certain amount of reward will be given, and if the balance of stETH decreases, a certain amount of Token stETH will be lost. The two are calculated separately.
Gas fees on Ethereum are also a cost consideration for small-amount users
This piece is contributed by the Footprint Analytics community.
The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.
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