Lido Doesn’t Use LDO As A Reward In The Month Of June

Key Points:

• Lido’s budget starting in June, will use wstETH to replace LDO as a reward token for DeFi integration.
• This is the first month that rewards are distributed using wstETH, which comes from DAO fees, not LDO.
• The tokens distributed in June were authorized through previous governance motions and DAO votes.

According to the June budget update released on the official website of the liquid staking protocol Lido, its budget starting in June will use wstETH to replace LDO as the reward token for DeFi integration.

The update states that this month’s reward budget is in line with the overall reward cap of up to 4 million DAI set in the Lido-v2 Ongoing Grant Request. Importantly, this is the first month of rewards distributed in wstETH, which comes from the DAO’s fees, not the LDO.

The tokens for distribution in June have already been approved and transmitted to the Ethereum reWARDs multisig through a prior governance motion and DAO vote 2. As such, this is an operational update to planned distributions and other higher-level alerts rather than a proposal that will be included in the EasyTrack governance motion, as past rewards budgets were.

Since they are in a different denomination, the customary leftovers on the operating reWARDs multisigs at the end of each month will not roll over to the following month’s rewards requirements. Instead, they will be restored to the Lido DAO’s treasury. The returns will be conducted on the multisigs in June, with an update issued in this thread.

According to the Lido community proposal passed by the Snapshot platform in the middle of last month, during the period from June 2023 to December 2023, up to 4 million DAI will be authorized to be distributed through rewarding multi-signature addresses or other marketing incentives, such as stETH or wstETH. The effective amount of stETH will be calculated based on the USD value once a month, based on the prevailing market price.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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