ETH Staked

    Q5. What is the total amount of ETH that has been staked with Lido? Show the daily amount of ETH staked with Lido in the past 3 months. Are there any trends you can see?

    Introduction

    Lido is a liquid staking solution for ETH 2.0 backed by industry-leading staking providers. Lido lets users stake their ETH - without locking assets or maintaining infrastructure - whilst participating in on-chain activities, e.g. lending.

    When staking with Lido, users receive stETH tokens on a 1:1 basis representing their staked ETH. stETH balances can be used like regular ETH to earn yields and lending rewards, and are updated on a daily basis to reflect your ETH staking rewards. Note that there are no lock-ups or minimum deposits when staking with Lido.

    stETH is a token that represents staked ether in Lido, combining the value of initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are pegged 1:1 to the ethers that are staked by Lido. stETH token’s balances are updated when the oracle reports change in total stake every day.

    stETH tokens can be used as one would use ether, allowing you to earn ETH 2.0 staking rewards whilst benefiting from e.g. yields across decentralised finance products.

    Source

    This analysis will evaluate the total ETH staked over time.

    Methodology

    A simple query of èthereum.udm_events table adding the amount variable aggregating by day as well as the accumulated total was done, using the constraint to_address = lower('0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84') as shown in the Etherscan link on the Lido Staking Page

    Results

    Figure 1. shows the cumulative ETH staked with Lido. It stands at 2.922M as of April 3rd as Figure 2. indicates.

    There are 4 phases that can be easily identified:

    • December 2020 - August 2021: gentle slope until around 0.7M total staked ETH

    • August 2021 - September 2021: accelerated slope until around 1.2M total staked ETH, almost doubling in one month.

    • September 2021 - March 2022: gentle slope until 1.9M total staked ETH

    • since March 2022: accelerated slope until the current level of 2,922M, which is a 50%increase in one month (1M more staked ETH).

    Conclusions

    ETH staked in Lido in seeing high growth levels in the last months.

    On August 2021, bonded ETH (bETH) on Terra network was launched by Lido and Anchor, allowing stETH holders (aka ETH stakers) to access collaterallised lending and mining rewards on Anchor. Source. This is most probably the cause for the first accelerated slope in Figure 1. and the second ATH of Figure 3.

    In 2022 Q1, Lido continued its expansion strategy with the launch of Kusama in February and the launch of Polygon beginning of March. It might well be that all this expansion would also reflect on more people using the staking opportunities within Lido and hence explaining the second accelerated slope in Figure 1. and the third ATH of Figure 3.

    Accuracy of results

    After some discussion in Discord where users were unclear what the best way to calculate total staked ETH was, I took the simplest approach of selecting all transactions to the address linked in the Lido Staking Page.

    The official Lido Dune Dashboard shows as of April 3rd a Lido ETH staked of 2.977M, so I will accept the small <2% inaccuracy in my results.

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    Figure 3. shows the daily amount of ETH staked with Lido. There are three days noteworthy of analysis:

    • May 22nd 2021 - ATH daily ETH staked 57k

    • August 28th 2021 - ATH daily ETH staked 73k

    • March 15th 2022 - ATH daily ETH staked 197k

    The first one seems to be a single event which doesn't have an impact on the trend as seen in Figure 1.

    The second one happens during the first accelerated slope from Figure 1. It is preceeded by several days of increase daily activity.

    The third one happens during the second accelerated slope from Figure 1. It is preceeded by several days of increased daily activity.