Lido on Solana: P2P Seeks $1.5 Million Lifeline to Fuel DeFi Growth or Risk Fading Away

The decentralized finance (DeFi) landscape is no stranger to twists and turns, and once again, it finds itself at a crossroads. P2P, the dedicated team behind Lido Finance's operations on Solana, has submitted a pivotal funding proposal that could determine the fate of Lido's liquid staking service on this layer-1 decentralized network.

Yuri Mediakov, the driving force behind this proposal, presents two stark alternatives to the Lido DAO: approve a $1.5 million injection to fuel growth, or brace for the gradual shutdown of staking support for Solana (SOL) users, expected to culminate by Q1 2024.

Mediakov's proposal outlines a clear roadmap for the utilization of the requested funds, emphasizing the need for a $1.5 million cash infusion over the coming year. This financial lifeline is allocated to various critical areas: $600,000 annually for strategic marketing efforts, $200,000 per quarter earmarked for development costs, and $100,000 designated for bolstering customer support.

The P2P team has set its sights on a bold objective – capturing 1% of Solana's staking market. With the backing of the Lido DAO, they intend to stand shoulder-to-shoulder with other ecosystem providers, ready to compete and conquer.

As of the latest data, Marinade Finance currently holds the throne as the top staking platform on Solana, boasting a whopping $103 million in total value locked (TVL), as reported by DeFiLlama. Lido Finance stands as the second-largest player, holding approximately half of Marinade's TVL.

If the proposal secures approval and the targeted 1% market share is attained, the P2P team envisions an annual influx of 10,191 SOL, equivalent to an impressive $200,000 at the present market rates, as projected by Mediakov.

Conversely, as a contingency plan, Mediakov has proposed the phased shutdown of Lido on Solana, concluding by February 2024. This route would entail a five-month wind-down process, with $20,000 allocated monthly to cover essential maintenance costs.

The voting for this pivotal proposal is scheduled to commence in four weeks, and it remains open for active discussion on Lido's dedicated forum.

It's worth recalling that P2P took the reins of Lido on Solana back in March 2022 through an agreement with Chorus One. Following this transition, the project's SOL TVL experienced a remarkable surge, growing by an astounding 330% and securing a significant share of the market.

Nonetheless, P2P did face substantial setbacks, including losses nearing $500,000 due to declining SOL prices and the tumultuous events surrounding FTX in November 2022.

Despite these challenges, Mediakov and the P2P team firmly believe that the liquid staking service holds the key to DeFi's prosperity on Solana. In the words of Yuri Mediakov, the senior product manager at Lido Finance, "We are at a critical juncture where the decisions we make today will shape the future of Lido on Solana. We are optimistic about what we can achieve together and look forward to your constructive feedback."

The fate of Lido on Solana hangs in the balance as P2P charts a path towards growth and sustainability. With a clear vision and a $1.5 million proposal on the table, the future of DeFi on Solana is at stake. The crypto community eagerly awaits the outcome of this pivotal vote, as it could pave the way for Lido's continued success or mark the end of an era in Solana's staking ecosystem.