LDO Spikes 10% On Fake Revenue Sharing Proposal

A new member of Lido Finance’s governance forum, calling themselves Lidosaviour, managed to kick off a 10% rally in LDO after proposing that the leading liquid staking protocol start sharing revenue with token holders.

The post has since been deleted, prompting some to surmise that Lidosaviour likely held a long position in LDO and hoped to profit from positive price action. Since the Uniswap Foundation floated the idea of sharing trading fees with UNI stakers on Friday, revenue sharing has become a hot topic.

“A short story of a new highly profitable strategy,” posted Googly.

Despite their potentially nefarious intentions, however, Lidosaviour clearly put some thought into the now-deleted proposal, which called for introducing an LDO staking module and buyback program that would align incentives for all Lido ecosystem participants through increased token utility for LDO.

The proposal also aimed to set a minimum size for the LidoDAO insurance fund at roughly 6,000 ETH and new staking terms, including a 14-day cooldown period for unstakers, and changes in case of slashing events.

While controversy surrounds Lido for its purported centralization – and inherent risk for the overall Ethereum ecosystem – it still commands a whopping 30.5% of all staked ETH, according to DefiLlama.