Lido: An Inviting SaaS Play

Fundamentals

Lido has established a dominant position in the liquid staking token (LST) market. As of Aug 2024, Lido's stETH and its wrapped version wstETH represent approximately 89% of the liquid staking market for Ethereum. This significant market share has made stETH the 8th largest cryptocurrency by market capitalization. Lido's dominance in the LST space is further evidenced by its 29% market share in Ethereum staking. The rise of stETH has reshaped the Ethereum supply composition and the dynamics of ETH emission, with Lido driving these changes. This dominance has led to stETH becoming increasingly attractive on lending platforms, often replacing ETH as the preferred asset.

Lido generates revenue from its one and only product, stETH. Lido charges its users (holders of stETH) a 10% fee for all staking rewards accrued. Below we show the daily revenue for Lido since its launch.

Thus far, Lido has generated over $175M in cumulative revenue with 60% ($100M) coming in the last year alone. In fact, as shown below Lido is the 4th highest revenue-generating app across all chains in 2024.