Lido is looking to expand its offerings to Solana

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Chorus One, a supplier of infrastructure, claims they will assist Lido in capturing 25% of all staked SOL.

One of the most popular ETH 2.0 and Terra staking services is looking to branch out into other proof-of-stake chains, beginning with layer 1 Solana.

Chorus One, a crypto infrastructure provider, proposed a plan to create a liquid staking token (for now: stSOL) that will accrue staking rewards and reflect staking positions with Lido validators on Solana, similar to Lido’s existing interest-accruing stETH token, in a post on Lido’s governance forums today.

The Lido Ecosystem Grants Organization, which Lido’s governance launched in March, will provide development funding to carry Lido’s services to a new chain. Chorus One has asked for a compensation package that includes 2,000,000 vested LDO tokens and a revenue-sharing model that would give Chorus One 20% of the revenue generated by protocol fees that would go to the Lido treasury.

The vesting unlock milestones for Chorus One are particularly optimistic, with a one-year cliff to capture 2.5 percent of the staked SOL supply and 1,000,000 tokens set to begin a one-year vesting plan when Lido for Solana captures 25% of the staked SOL supply.

Chorus One is actually the largest SOL staker, with $600 million in tokens, according to the plan.

An extension, according to a Lido official, may be a boon for the protocol’s revenue.

“For the Lido DAO, an expansion to liquid staking on Solana could bring with it a similar protocol fee set-up as we’re currently seeing with stETH/liquid staking on Ethereum, whereby a 10% fee on staking rewards is collected and split between node operators and the Lido DAO treasury (e.g. to grow an insurance fund),”

they said.

They also said that the possibility of extending to other Proof of Stake chains is still available.

“Lido has a very simple mission – keep Ethereum staking simple, secure and decentralised – and we will look to extend this to other networks where possible,”

they said.

According to Lido’s website, the service has 256,964 ETH staked (worth over $700 billion) across nearly 5000 emails, receiving 7.1 percent APY, and is the third-largest staking pool currently operational, according to Nansen. Although estimates differ, once ETH 2.0 is released, the APY rewards are expected to skyrocket.

Lido’s $LDO token has been on a tear recently, rising 54 percent in the last 24 hours to $2.9 and 216 percent in the last week — a run that could be fuelled by a new governance plan that would diversify a portion of the treasury to a group of prominent venture capital funds, including Delphi Digital, Digital Currency Group, Three Arrows Capital, and Alameda Research.

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