Lido Staked SOL
Crypto Overview
Purpose and Utility
Lido Staked SOL (stSOL) is a liquid staking token that represents staked SOL on the Solana blockchain. When users stake their SOL through Lido, they receive stSOL tokens in return. These tokens represent their staked position while allowing them to maintain liquidity and participate in DeFi activities.
Business Model
The protocol enables users to participate in Solana's Proof of Stake consensus mechanism while maintaining liquidity of their assets. Lido delegates user deposits to various validators in the Solana network, helping secure the blockchain. The stSOL token represents a claim on the underlying staked SOL plus staking rewards.
Real-World Adoption
As of 2024, Lido is one of the largest liquid staking protocols on Solana, with over $500 million in Total Value Locked (TVL). The stSOL token is widely integrated into Solana's DeFi ecosystem and can be traded on major exchanges.
Platform Development
Lido maintains active development with regular updates to their staking infrastructure. The protocol operates through a DAO (Decentralized Autonomous Organization) that governs protocol parameters and validator selection.
Token Distribution
The stSOL token is minted when users stake SOL and burned when they unstake. There is no pre-mine or initial token allocation, as tokens are created purely based on user staking activity.
Revenue Model Analysis
The protocol generates revenue through a small percentage of staking rewards. This fee structure is transparent and based on actual value creation through network validation, not interest-based lending.
Crypto Impact
To assign a comfort level investing in Lido Staked SOL from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Lido Staked SOL.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.