Lido Reduces Workforce by 15% for Sustainability

Lido, the Ethereum liquid staking protocol, is reducing its workforce by 15% to promote long-term sustainability, cofounder Vasiliy Shapovalov stated. In a post on X, Shapovalov shared that Lido Labs, the Lido Ecosystem, and the Lido Alliance will be trimming approximately 15% of their contributor teams. "This decision was about costs — not performance," he clarified. Shapovalov emphasized that despite the challenging circumstances, the move is aimed at fostering long-term resilience. He noted that while the decision might seem counterintuitive during a market upswing, it underscores a strategic commitment to sustainable growth, improved operational focus, and alignment with the priorities of LDO tokenholders. Launched in 2020, Lido allows users to retain liquidity with their staked ETH, avoiding the typical restrictions of having funds locked away during their participation in network security. In February, Lido v3 introduced innovative modular smart contracts known as "stVaults," which enable users to create complex staking strategies. As the second-largest protocol in the liquid staking space, Lido boasts around $31 billion locked and annual revenues of $90 million, according to DeFiLlama data. Recently, LDO token experienced a 4.3% increase over 24 hours, yet it has faced a 21.6% decline over the week, as per The Block's price page. Disclaimer: The Block is an independent media organization that provides news, research, and data. As of November 2023, Foresight Ventures holds a majority stake in The Block and invests in other cryptocurrency enterprises. The Block maintains its independence in delivering objective and timely information concerning the crypto sector. The content provided is for informational purposes only and is not intended as legal, tax, investment, or financial advice.