Blockchain Platform Lido Now Supports Solana (SOL) Staking

Blockchain Platform Lido Now Supports Solana (SOL) Staking

Solana’s profile continues to rise. With the coin’s current price jump, adoption has also been growing.

The latest sign of increased Solana adoption is coming from Lido – a blockchain-based crypto staking platform.

An Interesting Staking System

Earlier this week, Lido announced expanding its staking services to include Solana’s native SOL token. In a tweet, the company confirmed that SOL holders can now stake their coins via its platform, earning rewards in the process.

The development marked the project coin that will be supported on Lido – behind Ethereum 2.0 and Terra. Lido has been especially popular due to its liquid staking operation, in which currencies are converted to their synthetic counterparts on the platform.

These synthetic tokens are then used in decentralized finance (DeFi) protocols to improve their holders’ yield-generation opportunities. So, when an investor locks their coins, they receive the synthetic versions of these tokes that they can use in the interim.

With support from Lido, stSOL (synthetic SOL tokens) will now be available on DeFi protocols such as Serum, Phantom, and Raydium. Kasper Rasmussen, Lido’s marketing chief, told industry news sources that the projects would allow stSOL users to provide liquidity and get additional rewards with their regular staking rewards.

Felix Lutsch, the chief marketing officer for blockchain staking and interoperability platform Chorus One, also pointed out the presence of a wormhole bridge that connects Solana with other leading blockchains like Ethereum. As he explained, they will be hoping to use this bridge to bring Lido-staked assets across chains. Chorus One is currently in charge of developing Lido’s liquid staking solutions for Solana.

All Eyes on SOL

Lido’s expansion into Solana is just the latest adoption play for the asset, which has been on a significant price upsurge in the past week. Yesterday, Delta Exchange – a crypto exchange and derivatives trading platform – launched options trading for SOL and Cardano’s ADA token. The move will bring both tokens to move investors, many of which would like to take advantage of their recent gains.

Delta already offers Options trading for coins like Bitcoin, Ether, Binance Coin, and XRP. The company’s rollout for SOL and ADA will start with daily maturities for call and put options. However, weekly and monthly maturities are expected to come at a later date.

Options offer owners the right – but not the obligation – to trade specific securities at a particular time and price.

They are popular in the crypto market, as they allow investors to speculate on coin prices in both the short and long term. The market for derivatives has been growing recently, with open interest in Bitcoin options alone doubling their levels in June – according to data from ByBt.

With the growth of platforms like Delta and FTX, a derivatives platform built on Solana, the derivatives market should see more cash influx. This also puts SOL in an interesting spot for bigger gains.

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Author: Jimmy Aki

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