Lido plans to save costs and to reduce its workforce by 15%, according to an X-post from Vasiliy Shapovalov, co-founder of the protocol.
In the post, Shapovalov said that Lido Labs, Lido Ecosystem and Lido Alliance would reduce their contributing teams, resulting in a reduction in the total workforce of 15%. He clarified that the decision was about saving costs. He wrote:
“This decision was about costs – no performance. It affects incredibly talented people who have helped shape the protocol and the community.”
Shapovalov acknowledged that reducing contributing teams seems to be contrary to the market conditions – especially after Ethereum (ETH) almost reached its primary psychological barrier of $ 4,000. However, he clarified that the relocation will maintain growth and reduce priorities for Lido (LDO) token holders.
He said, “Lido has been building in recent decades – and this change helps to strengthen that basis.”
Source: Vasiliy Shapovalov via X.
Lido earned $ 41.56 million during the year
Lido has collected $ 44.68 million in income this year. The expansion protocol received $ 446.76 million in reimbursements and incentives amounted to $ 3.12 million, resulting in a total profit of $ 41.56 million.
Defillama too report Lido’s annual operational costs. The DAO has 83 people on its payroll, with salaries of a total of 2,400 ETH (around $ 8,384 million). Operational costs are comparable, at 2,424 ETH (approximately $ 8,449 million). However, these figures reflect the budget of 2022 of the DAO.
Lido’s income for this year exceeds the budget of the protocol by 147%
At the time of writing, the total value of Lido (TVL) is $ 31.323 billion and ranks the second after Aave. The Defi protocol is used on seven chains, including Ethereum, Polygon, Optimism, Base, Gnosis Chain, Unichain and Soneium. Defillama shows that 99.96% of Lido’s TVL lives on the Ethereum network.
Lido Labs is not the only Defi company that has decided to reduce its workforce. Last month, their own Labs released 29 employees, which resulted in a reduction of 25% in the workforce.
The decision was not powered by cost savings, but rather to concentrate on building EigenCloud, a decentralized cloud platform. SREERAM Kannan, founder of his own labs, shared his plan On X and said: “Today is one of the most difficult days we had at our own labs … This morning I shared plans for a restructuring of the company, streamlining our activities and concentrating our efforts on building and scaling up self -cloud. Unfortunately, this means saying goodbye to brilliant colleagues.”
