Journalist
Posted:
- Axelar Network partnered with Lido to bring sETH to the Cosmos ecosystem.
- Lido governance introduces a risk reduction proposal as Lido continues to demonstrate resilience in TVL and performance metrics.
In a recent development, Axelar Network has a cooperation with Lido [LDO] to introduce sETH to the cosmos [ATOM] ecosystem.
Is your portfolio green? View the LDO profit calculator
The venture involves bringing both versions of sETH, namely the rebasing token sETH and the auto-compounding wrapped token wstETH, into the Cosmos network. This process involves bridging Ethereum through Axelar to Neutron, and then integrating with the broader IBC ecosystem of chains.
This transition marks the beginning of stETH and wstETH’s journey within the Cosmos. Once wstETH is successfully deployed on Cosmos and cross-chain governance mechanisms are firmly established, Lido DAO will take control of the ownership, administration, and overall management of the bridge from Axelar and Neutron.
This collaboration could potentially increase the usefulness and accessibility of stETH.
The board remains active
In addition, the Lido board recently introduced a proposal aimed at mitigating risks. The proposal outlines a surplus management framework for Lido DAO, which is primarily intended to minimize redemption risks in the event of related incidents.
The initial recommendation includes increasing the slash provision by 5x to 25,608 stETH, with plans for dynamic and algorithmic updates.
a redundancy management framework for Lido DAO to minimize redemption risk for users in case of correlated slash events
initial recommendation is to increase the slash provision by 5x to 25,608 sETH (and to update it dynamically/algorithmically)https://t.co/4YPjExGsAh pic.twitter.com/9IKHzF0Tgn
— sacha💧 (@sachayve) September 15, 2023
Some delay in performance
Despite these factors, Lido was unable to see any growth this past week.
Examining Lido’s performance metrics, Total Value Locked (TVL) saw a marginal decline, reaching $14.05 billion (7-day change: -0.38%) after a slight decline in token prices.
However, Lido secured the top spot in net new deposits on the Ethereum Beacon Chain this week, with an impressive increase of 42,880 ETH. The stETH Annual Percentage Rate (APR) remained relatively stable, reflecting a seven-day moving average of 3.73%.
Source: Dune Analytics
On the other hand, the total volume of (w)stETH deposited into DeFi pools showed a small decline of 5.72% over the past week.
Currently, it stands at 2,972,935 sETH, which represents 34.56% of the total sETH supply. Notably, a significant portion of these deposits came from sETH withdrawals from the Lybra Finance pool.
Realistic or not, here is LDO’s market cap in BTC terms
Additionally, the amount of sETH bridged to Layer 2 (L2) experienced a modest reduction of -0.43%, amounting to 134,699 sETH.
Source: Dune Analytics
In addition to the poor performance of the protocol, LDO’s price movement also suffered. At the time of reporting, LDO was trading at $1.52, which represents a slight decline of 0.42%, according to CoinMarketCap. Furthermore, trading volume for LDO has fallen by 18.96% over the past 24 hours.