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Lido introduces "Layered Reward Sharing Program," offering an additional 5% bonus to stakers, with near-unanimous community support.

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Lido introduces "Layered Reward Sharing Program," offering an additional 5% bonus to stakers, with near-unanimous community support.

Table of Contents

Lido Referral Code Scheme

Tiered Rewards Share Program is primarily designed to further expand Lido's market share in the Ethereum liquidity staking market.

Currently, Lido's stakers receive 90% of the staking rewards, with the remaining 10% split between node operators and the Lido DAO. In the future, Lido plans to offer 5% of staking rewards, distributed across 5 tiers to stakers of different scales.

All participants will receive an exclusive referral code, and the staking amounts specified for each tier include both the ETH staked by the participant themselves and the total ETH staked through the participant's referral code:

  1. 0 – 50,000 ETH: 30%

  2. 50,000 – 150,000 ETH: 35%

  3. 150,000 – 350,000 ETH: 40%

  4. 350,000 – 700,000 ETH: 45%

  5. 700,000 ETH or more: 50%

No Re-staking, Unstaking

The proposal also lists several regulations, and the Rewards Program Committee established by Lido claims to inspect all newly staked ETH. Engaging in the following behaviors will result in disqualification from participating in the rewards program, indicating Lido's concern for stETH price fluctuations:

  1. Unstaking

  2. Providing one-sided liquidity on DEX for stETH-related pools only

  3. Selling stETH: Selling stETH after staking on DEX/CEX

  4. Re-staking: Selling or unstaking stETH and staking again

  5. Leveraged collateral: Position risk ratio borrowing funds/ borrowing limit exceeding 95%, stETH/ETH decoupling by more than 1%, wstETH liquidation threshold increase

Community Overwhelmingly Supports Rewards Program

The voting period for the proposal was from June 23 to June 30, with a total of 29 million LDO cast in favor before the deadline, with only 2.4 LDO against.

Data shows that Lido currently holds a 32.11% share of Ethereum nodes, even higher than the combined 20.27% of Binance, Coinbase, and Kraken. However, Lido is still focused on expanding its market share. Previous advice from Ethereum's core developer and founder Vitalik seems to have had no effect.