Lido Slashes 15% of Workforce in Bold Move to Secure Future Growth

Liquid staking giant Lido makes painful cuts to stay lean—because nothing says 'long-term sustainability' like pink slips and spreadsheet magic.

The protocol's 15% staff reduction shocks the DeFi world, proving even crypto's golden child isn't immune to corporate calculus.

One analyst quipped: 'Turns out 'decentralized' doesn't mean recession-proof when VCs come collecting.'

Lido Removes ETH Staking Trade-Off with Liquid Access

Founded in 2020, Lido allows users to stake ETH while maintaining liquidity, removing the trade-off between earning staking rewards and having access to assets.

The protocol rolled out its Lido v3 upgrade earlier this year, introducing “stVaults,” modular smart contracts that let users customize their staking strategies.

Despite the job cuts, Lido remains one of the most dominant players in the liquid staking sector.

It currently holds $31 billion in total value locked (TVL) and generates approximately $90 million in annualized revenue, according to DeFiLlama.

The LDO token saw a 4.3% uptick in the past 24 hours, though it’s still down 21.6% over the week, reflecting continued volatility in the staking and DeFi space.

In May, Lido discovered a compromised oracle key linked to validator operator Chorus One.

As part of efforts to ensure long-term sustainability, Lido Labs, Lido Ecosystem, and Lido Alliance have made the hard decision to reduce the size of their contributor teams, impacting around 15% of the workforce.

This decision was about costs — not performance. It affects…

The breach, identified on May 10 after a wallet triggered a low-balance alert, led to the loss of 1.46 ETH but did not affect user funds or disrupt staking operations.

The affected wallet, created in 2021, lacked the same security protocols as other critical infrastructure.

Thanks to Lido’s 5-of-9 quorum oracle model, the threat was contained without compromising the protocol’s integrity.

All other oracle participants and infrastructure passed security checks.

Chorus One clarified that no customer assets were at risk, and the breached wallet was never used to hold client funds.

Lido Exits Polygon, Solana

Last year, Lido announced its decision to end staking services on the Polygon network, citing limited user adoption, evolving DeFi trends, and a renewed strategic emphasis on Ethereum.

The decision to exit Polygon was attributed to multiple challenges, including high maintenance demands, insufficient staking rewards, and the increasing prominence of zkEVM technology in the DeFi space.

Lido’s team stated that the rise of zkEVM-focused solutions reduced demand for liquid staking on Polygon’s Proof-of-Stake (PoS) chain, impacting its growth potential within the DeFi ecosystem.

Lido’s exit from Polygon followed a similar move last year when it ceased operations on the solana blockchain due to financial constraints and low fees.