- Lido DAO Community has approved over 99% vote to allow for the distribution of staking rewards across Aave villiduity pools.
- LDO rewards are now available across Ethereum, Arbitrum & Optimism blockchains.
- Lido users earn rewards for staking Ethereum (ETH).
Lido, the liquid staking protocol for Proof-of-Stake (PoS) coins, will now distribute staking rewards in LDO, the native LidoDAO token through three major Aave v3 liquidity pools.
Distributed Ether (stETH), liquidity pools across Ethereum and Arbitrum are covered by Aave v3.
Aave v3 to distribute Lido staking rewards
This news comes after a community vote regarding LDO rewards distribution proposalThis project received 99% of the support. With this development, every LDO “emission admin” on the three blockchain networks will have access to a wallet that’s controlled by Lido.
Aave, a smart contract-enabled, non-custodial liquidity platform, has recently launched its v3 version on Ethereum. DeFi already launched Aave’s v3 protocol for layer-2 blockchains Arbitrum & Optimism.
Lido DAO announced in 2022 that it would offer stETH to liquidity providers for Arbitrum and Optimism, as part of its efforts to encourage further adoption of the staking protocol.
Users of Lido can stake any amount ETH to earn daily rewards. LDO will then allow them to participate in the DeFi ecosystem while their staked Ethereum remains locked. Notably, Ethereum will allow the withdrawal of staked ETH after its upcoming network upgrade dubbed “Shanghai.” The hard fork is expected in early March this year.
The Lido amount of ETH staked between 30 Januaryand 6 Feb 2023 surpassed 5.05 million LDO rewards, with more than 1.95 million LDO rewards live in February. This is due to an increase in Ethereum-based lending pools.
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