Lido Alliance Introduces Drop, Liquid Staking Protocol, And Allocates 10% Of DROP Supply To Staking Rewards Pool
In Brief
Lido Alliance unveiled liquid staking protocol for Interchain assets, Drop, to enhance the economic sustainability of sovereign blockchains.
Lido Alliance unveiled Drop, a liquid staking protocol developed for Interchain assets. Drop seeks to enhance the economic sustainability of sovereign blockchains by converting inactive or frozen assets into dynamic opportunities. Developed as an Integrated Application on Neutron, it leverages partnerships with decentralized finance (DeFi) platforms, providing individuals with optimized yield and an improved overall experience.
Drop allows users to stake Interchain assets in exchange for dAssets, which serve as proof of staked positions. dAssets automatically accumulate staking rewards and can be further used within Drop’s ecosystem to generate additional benefits.
Liquid staking via Drop utilizing dAssets enables stakers to generate staking rewards, avoiding the need to lock the assets. This provides an opportunity to utilize them in multiple applications for extra yield, automatically compound rewards, and withdraw at any time. Users will also be eligible for airdrops, contribute to ecosystem development, and can earn DROP.
It currently offers liquid staking for ATOM, with support for TIA planned in the near future. Additional Interchain assets will be introduced over time, broadening Drop’s features and opportunities for users.
At present, Drop directs 10% of the staking rewards from liquid staked assets into a specific pool. Once the DROP token is launched, the DROP DAO will decide how these assets will be utilized, potentially including distributing rewards to DROP stakers or establishing an insurance fund.
Lido Alliance Introduces Droplets Program To Boost Interchain Economic Benefits
Alongside the launch of Drop, Lido Alliance has introduced the Droplets Program, aimed at coordinating market participants to optimize the economic benefits of the Interchain and evaluate each participant’s contribution to the protocol’s success.
A total of 100 million DROP tokens, representing 10% of the total supply and serving as the governance token for the Drop Protocol, will be allocated to participants in the program.
Users can earn Droplets by liquid staking, utilizing dAssets within ecosystem applications, and referring others to the platform. At the program’s conclusion, Droplet holders will be rewarded with DROP tokens and will become the first members of the Drop DAO.
Lido functions as a liquid staking platform for Ethereum and Polygon, providing derivative token contracts for liquid staking along with smart contract infrastructure to support native token staking services.
Recently, Lido’s Contributors launched the wrapped staked ETH (wstETH) on the BNB Chain. This enables users to easily bridge their wstETH to the BNB Chain, allowing them to engage with a variety of DeFi protocols within its ecosystem.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
