Lido’s market share has fallen from 32% to 24% since 2023, prompting plans for “low-risk staking” for institutional users. Co-founder Vasiliy Shapovalov detailed the strategy after Lido’s share hit a four-year low.

Three years ago, Ethereum researcher Danny Ryan warned about risks of liquid staking derivatives, which could lead to outsized profits and incentives to censor transactions.

Lido introduced features like distributed validator tech and home staker support but lost market share to competitors like Ether.Fi and Binance. Developer focus on governance and community staking didn’t drive growth, leading to layoffs.

With DeFi and TradFi merging, asset managers eye Ethereum for staking. US regulators signal a hands-off approach for liquid staking providers, potentially benefiting Lido’s stETH token due to its liquidity advantage.

Read more at Yahoo Finance: Lido eyes ‘low-risk staking’ to boost flagging market share