STSOL

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Lido Staked SOL

Use Cases of Lido Staked SOL

Lido Staked SOL is designed to provide liquidity and flexibility to Solana token holders while staking their SOL tokens. Here are some key use cases:

• Liquidity: Lido Staked SOL allows users to stake their SOL tokens and receive stSOL, a liquid staking token that can be traded or used as collateral in DeFi products. This means users can participate in staking while still having access to their assets for other uses.

• DeFi Integration: stSOL can be integrated into various DeFi applications on the Solana network, enabling users to maximize their yield by participating in farming, lending, and other DeFi activities.

• Easy Staking: Lido simplifies the staking process by allowing users to stake any amount of SOL with no minimum or maximum limits, and without the need for complex delegation or activation steps.

• Decentralized Security: Lido distributes staked SOL tokens across multiple validators chosen by the Lido DAO, ensuring decentralized security and minimizing the risk of centralization.

• Daily Rewards: Users receive daily staking rewards, which are reflected in the increasing value of their stSOL tokens.

• Flexibility: Users can unstake their SOL tokens at any time without waiting periods, providing flexibility in managing their assets.

Benefits of Lido Staked SOL

• Simplified Staking Process: Staking SOL through Lido is a one-step process, requiring just a single click to deposit into the pool.
• Diversification: Lido handles validator diversification, spreading the risk across multiple validators without the need for users to create and manage separate stake accounts for each validator.
• Immediate Rewards: Users start earning rewards from the moment of deposit, reflected in the value appreciation of stSOL tokens.
• Liquidity: Lido provides instant liquidity, allowing users to trade or use their staked assets in DeFi products without waiting for delegation activation.
• Integration with DeFi Protocols: Lido integrates with various DeFi protocols, enabling users to leverage their staked assets in multiple applications.

Drawbacks of Lido Staked SOL

• Dependence on Lido DAO: The Lido program is governed by the Lido DAO, which controls the list of validators participating in the program. This could potentially limit user control over specific validator choices.
• Centralized Management: While Lido diversifies across validators, the management of the pool is centralized through the Lido DAO, which may not appeal to users seeking full decentralization.
• Limited Control Over Validators: Users do not have direct control over which validators their stake is delegated to, as this is managed by the Lido program.

Founders of Lido

Lido was founded by Vasilii Shapovalov and Konstantin Lomashuk, along with a team of experienced developers, in December 2020. They are also the co-founders behind the liquid staking protocol that supports various blockchains, including Solana, which is where Lido Staked SOL is utilized.

Key Points

• Founders: Vasilii Shapovalov and Konstantin Lomashuk
• Founding Date: December 2020
• Project Scope: Liquid staking solutions for multiple blockchains, including Solana (Lido Staked SOL) and Ethereum.

Investors in Lido Staked SOL

Lido Staked SOL is part of the broader Lido Finance ecosystem, which has received significant funding from various investors. Key investors include:

• Paradigm: Led a $73 million funding round for Lido Finance, purchasing $51 million worth of LDO tokens with 15,120 ether (ETH).
• Coinbase Ventures: Contributed to the funding round.
• Three Arrows Capital: Participated in the funding.
• Jump Trading: Also invested in Lido Finance.
• Alameda Research: Contributed to the funding.
• Digital Currency Group: Participated in the investment round.

These investments primarily support Lido Finance's broader initiatives, including its liquid staking protocols for Ethereum (Eth2) and other proof-of-stake blockchains like Solana. The funding is aimed at integrating Lido's staked tokens, such as stETH and stSOL, across various DeFi ecosystems.

Halal Status of Lido Staked SOL

• Halal Status: No
• Reason: The majority of Islamic scholars consider staking in Proof-of-Stake (PoS) systems, such as those used by Lido Staked SOL, to be non-halal due to the potential involvement in validating transactions that may be haram (forbidden). This includes transactions that could involve interest (riba) or other non-compliant activities. Additionally, the concept of staking can be seen as a form of lending or insurance, which may also be considered haram.