Staking my ETH (Part 2) - Due Diligence Lido Finance
This is how I do my due diligence before investing more than $500 in DeFi
My due diligence process is as follows: (not in order of importance)
Who are the key team members? What are there past records?
Have their smart contracts been audited and if so by who and when?
Is their Github repo actively maintained? Are there commits and are issues handled in a timely manner?
What is their total market cap and TVL?
How many wallets/addresses do they have?
What is their FCAS score?
What is the activity like in their Discord and/or Telegram channels?
Where are they deployed?
Lido Finance - https://lido.fi/
But first a little bit of background about these guys.
The biggest liquid staking protocol right now is Lido Finance, which launched on Ethereum and has the majority of the market share. Liquid staking is a new form of staking that seeks to unlock the value held by the tokens that are being staked. Source
Lido is the market leader for Ethereum liquid staking, representing over 80% of market share in that space, recent estimates show. Assets staked on Lido are worth over $10 billion USD at today’s prices, and are split across 76,000 individual crypto wallets. Source
Team: Konstantin Lomashuk, co-founder. Several VCs and Angels. Notable mentions: Stani Kulechov of Aave and Kain Warwick of Synthetix. Source
Audits: Their smart contracts are audited by Quantstamp and Sigma Prime. Source
Github Actively maintained. 104 repos. Most recent update a few hours ago. Source
Market cap + TVL: $409,650,774 and $19.01b respectively according to coinmarketcap and defillama.
Holders: 12,862 via coinmarketcap
FCAS: N/A
Social Media: they are on twitter, discord, telegram, and reddit. They have 9,979 members on Discord with over a thousand active.
Blockchains: Ethereum, Polygon, Terra, Kusama, Solana.
On a rating scale from 1 to 10, where 1 is I won’t invest and 10 I will. I would give them a 10.
Tomorrow I’ll do the same for Rocket Pool and the day after that I’ll pick one and start staking my ETH.