Lido to Use wstETH Instead of $LDO As the Liquidity Incentive Token Starting in June

According to the June budget update of the liquidity staking protocol Lido DAO, Lido will use wstETH as the reward token for DeFi incentives, replacing $LDO.

The update states that the reward budget for this month complies with the overall reward cap of 4 million DAI equvilent, as set in the ongoing Lido-v2 grants request. Importantly, this is the first reward month allocated using wstETH, funded by the DAO, rather than $LDO. The tokens for June distribution have been authorized through previous governance proposals and DAO voting and sent to the Ethereum reward multisig address.

Lido charges fees for its liquidity staking service, with a 10% fee on staking rewards that are distributed between node operators and the DAO treasury. According to Deepdao's data, the Lido DAO treasury currently holds assets worth $278 million in total, with $LDO accounting for 70% at $197 million, and $ETH and stETH together accounting for 24% at $66 million.