LDO surges nearly 80%! Lido introduces Staking Router to diversify staking

The staking protocol Lido Finance (LDO) held a community meeting on January 4 to discuss decentralizing the protocol, including the proposed Staking Router introduced in December 2022, aimed at making staking services more decentralized. The governance token of Lido Finance has seen a nearly 80% increase in the past seven days.

What is LDO: Staking Router?

Lido Finance, a protocol that provides various PoS chain staking services, is the largest institutional staking provider on Ethereum. It allows users to stake ETH in exchange for stETH staking certificates, which can be traded on the market, making the staked ETH liquid and including staking rewards. The key difference between this service and staking ETH on your own is that it does not require a minimum threshold of 32 ETH for staking.

Unlike other staking service providers, Lido Finance currently averages services from 30 staking pools, maintaining operations by collecting 10% of staking rewards; Lido Finance still adheres to a more decentralized goal, thus aiming to increase the diversity of node operators.

The main function of the Staking Router is to allow Lido to distribute staking to more and smaller node operators, thereby decentralizing the protocol. At the same time, it can also balance the protocol's performance and integration with DeFi.

In reality, the functionality of the Staking Router is more complex, for more details please refer to details.