Lido Finance Achieves ATH TVL Despite Liquidity Pool Attacks Linked to Curve Finance

The largest staking service provider has surpassed the $15 billion Total Value Locked (TVL) milestone, the highest since May 2022.

Lido Finance Hits ATH TVL

Lido Finance, one of the most popular Liquid Staking platforms on Ethereum, has seen over 10,000 participants in the protocol, helping push the TVL past $15 billion for the first time since May 2022.

According to Lido Finance's July report, the number of users staking ETH on the platform exceeded 166,000, marking a 6.66% increase over the past month. Lido's TVL surpassed $15 billion on July 14 but later dipped to $14.68 billion due to a drop in ETH price at the time of writing.

Despite some traders withdrawing funds amid the Curve Finance attack, the protocol has consistently recorded substantial net inflows. Lido Finance predicts that the total ETH staked on the platform will exceed 8 million ETH in August 2023.

Treasury Holdings and stETH Performance

The Lido DAO treasury continues to see an increase in stETH holdings following the June revenue-sharing proposal to convert the Treasury's ETH holdings to stETH. In July 2023, the Lido treasury's stETH holdings increased by 4.04% to 34,415 stETH.

The flash loan attacks on ETH liquidity pools related to the Curve Finance incident led to a 2.88% decrease in stETH across DeFi protocols and a significant 53.07% drop in total stETH within liquidity pools.

Kasper Rasmussen, Lido's Head of Marketing, stated, "The liquidity decline in DeFi pools is largely due to concerns surrounding the Curve Finance hack, prompting many liquidity providers to withdraw funds until the situation is clarified."

Despite these challenges, stETH metrics showed a 3.63% increase in new holders and deposits in DeFi lending protocols. Additionally, L2 bridges saw a 12.83% rise in wstETH deposits.

stETH and wstETH Growth

The number of stETH addresses increased by 9.26%, while wstETH on L2 grew by 12.83% in July 2023.

Curve Finance Hack and Recovery

Curve Finance, a decentralized stablecoin exchange, lost over $70 million in a hack on July 30, 2023, impacting other crypto protocols, including Lido Finance. Since then, Curve has recovered approximately 73% of the stolen funds.

According to data from The Block, over 786,000 validators are active on the network, with cumulative Ethereum deposits on the platform reaching 25.13 million ETH, most of which were active throughout 2023.

The number of validators (red line) and the cumulative ETH deposited (green area) on the Ethereum network have increased over the past 12 months. Source: The Block.