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# System prepended metadata

title: CODEC - $stSOL ( Lido Staked Sol)

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title: CODEC - $stSOL ( Lido Staked Sol)
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### Collateral Onboarding Domain Evaluation Criteria (CODEC)
The CODEC defines Jet Protocol's domain criteria when evaluating assets for onboarding. The CODEC evaluates an asset and its project against detailed data points across all protocol-impacting domains.

## Overview of Protocol & Metrics

### Protocol Summary
#### The Protocol Summary provides a brief introduction to the underlying protocol of the asset and its token mechanics. This section establishes context for further evaluation, giving insight into project team and high-level history of the project and the token. Data gathered in this section include:

**Native ecosystem & Protocol Type (Peer-to-peer, Peer-to-Liquidity, etc.)**: Lido stSOL is a non-custodial liquid staking protocol built on Solana. stSOL has currently onboarded 15 validators to date. The goal of Lido and liquid staking is to make Solana more decentralized and secure. 
**Asset Type (Native or Wrapped)**: Native
**Asset (Token) Use**: Users are able to use their $stSOL tokens across different protolols within the Solana Ecosistem. Such as earning yield or even borrowing against it.
**Asset Summary Description**: $stSol is a Solana Native token that works as a recipt for all the $SOL tokens deposited in the Lido Staking Program.
**Project's Founding Members**: [Vasily Shapovalov](https://https://twitter.com/_vshapovalov?lang=en) & [Konstantin Lomashuk](https://twitter.com/lomashuk?lang=en)
**Legal structure of the protocol (LLC, Association, Foundation, DAO)**: [Private Held](https://https://www.crunchbase.com/organization/lido-b607) and [Lido DAO](https://mainnet.lido.fi/#/lido-dao/).
**ICO Date**: No ICO
**Initial Price & Valuation** : N/A
**Capital Raised**: 143M Raised by seven inverstors over three rounds. ource: [Crunchbase](https://https://www.crunchbase.com/organization/lido-b607/company_financials)
**Proportion of ICO raised converted into fiat**: N/A
**Details and amounts of any fees generated by the protocol**:
Lido applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO treasury, and Lido on Solana developers. This fee cut is applied to incentivize Lido maintainers. To incentivize sustainable management of the Lido ecosystem, half of the fee split (=5%) is given to the node operators, 1% to developers, and 4% to the DAO treasury which can further utilize it in avenues like grants, insurances, and value accrual to LDO. 
Source: [Lido](https://https://docs.solana.lido.fi/fees/)

### Tokenomics
**This section helps the evaluators to establish an understanding of the circulating supply of the token, how centralized is its control, as well as how token's mechanics might impact the supply in the future. Details under assessment include (where applicable):**

**Way of issuing & distributing the tokens**: The way Lido distributed $stSOL was always through a minting mechanisms. This means that every $SOL token being deposited into Lido Staking Program, a new $stSol was minted.

**Current token distribution**: The current distribution of the token is all among the public. We can observe its distribution in [Solana Explorer.](https://explorer.solana.com/address/7dHbWXmci3dT8UFYWYZweBLXgycu7Y3iL6trKn1Y7ARj/largest)

**Active Addresses or Users holding the asset**: 36,346

**Investor Concentration**: Entirely among the users.

**Whale Presence**: See Distribution: [Here](https://explorer.solana.com/address/7dHbWXmci3dT8UFYWYZweBLXgycu7Y3iL6trKn1Y7ARj/largest)

**Pre-ICO investors**: There was seven ( Paradigm, Alameda Research, Coinbase Ventures, Three Arrows Capital, A16Z, Jump Trading and Digital Currency Group) investors in Lido Finance & LDO token. Not $stSOL.

**Token distribution between project team vs. investors vs. public**: Entirely among the users.

**Token distribution changes over time**: 

**Future issuance mechanisms**. $stSOL is expected to increase as long as Lido reaches more users on Solana. The burning /issuance mechanism relies on users stakes or unstake SOL on Lido.

**Burn mechanism (deflationary)** 

**Decreases or increases in token supply over time** : The supply has increased since the token has been created.

**Possibility to mint new tokens by the project** : The posibility to mint new tokens relies on the users.

**Staking mechanism**: There is no $stSOL staking mechanism provided by Lido. Despite this, users can acts as a $stSOL liquidity providers on different existing protocols such as Aldrin, Orca and Mercurial.

**Slashing mechanism**: N/A

**Vesting schedule (if any) & vesture limitations**: N/A

**Special purpose of the token or issuance schedules (e.g. liquidity mining)**. N/A

**Audits**
The Governance Committee will evaluate if the protocol, project and the asset have been audited by recognized auditors. If available, audits will be reviewed and their results will be incorporated into overall assessment of the asset. 
[Audits](https://docs.solana.lido.fi/security/) 

### DEX Volumes & Liquidity 
Trading volumes and available liquidity are important when estimating the speed and difficulty of recycling the asset in case it needs to be liquidated. Currently, Jet liquidates asset positions on Serum only and therefore the evaluation focuses on liquidity available on DEX (excluding CEX), in particular on Serum. The asset is evaluated against USDC as trading pair (other major crypto assets might be included as well, if applicable). To assess liquidation risk, the Governance Committee will look at:

**Asset's supply on decentralized exchanges over time**

**Liquidity amounts on Solana and on Serum**: $166K TVL. Source: [Vybe Network](https://projectserum.vybenetwork.com/#/tokens/7dHbWXmci3dT8UFYWYZweBLXgycu7Y3iL6trKn1Y7ARj)

**Daily aggregated trading volume in USD**/**Liquidity depth (resting orders on Serum order book)**

![](https://i.imgur.com/szuXsvo.png)


**Price volatility**: Price volatility is attached to the volatility of $SOL. See chart: [Coin Gecko](https://www.coingecko.com/en/coins/lido-staked-sol)

**If asset is used outside of its protocol:**: $stSol holders are able to earn yield with their assets in different protocols within Solana. At the same time, users can use their tokens as collateral in protocols such as Francium and Solend.

**Protocols where asset is integrated**: $stSOL is integrated in the main protocols on solana by TVL. Such as: CEX: FTX
DEX: Aldrin, Orca, Serum, Raydium & more

**Amount of asset liquidity existing in those protocols**: Total staked with Lido 3,315,371.2 SOL
Stakers 15,564
stSOL market cap $146,208,967
Additional stats: [Dashboard 1](https://datastudio.google.com/u/0/reporting/b41835bc-fafb-46c8-9ade-b012f28a41b2/page/p_lisyazt3vc), [Dashboard 2](https://datastudio.google.com/u/0/reporting/b41835bc-fafb-46c8-9ade-b012f28a41b2/page/p_lisyazt3vc)



### Oracles
The number of oracles monitoring the asset and number of price feeds available are needed to assess the accuracy of asset's pricing information. Jet uses Pyth network to source data for its onboarded assets, so it's beneficial if the asset is monitored by Pyth with more than 5 feeds available.
**Oracle:** $stSOL is using Pyth. Source: [reference link](https://https://pyth.network/price-feeds/crypto-stsol-usd)
### Bridges
In addition, for wrapped assets, the security and stability of bridges used needs to be assessed. For non-custodial bridges, audits should have been performed and audit reports will be evaluated as part of asset's risk assessment.
**Bridge:**: N/A
### Legal Specifications 
To complete the assessment of the asset, Jet Governance Committee will evaluate legal profile of the project and the token to determine if there are any regulatory-related risks or limitations which need to be considered. Legal profile will be determined with following information:

**Token issuer:**: Lido Staking Program

**Regulatory Status of the token (based on legal opinions, prospectuses, public disclosures, filing documents, etc.):** No

**Jurisdiction(s) in which the token was issued**: Grand Cayman, Cayman Islands. Source: https://lido.fi/privacy-notice

**Token issuance as part of a regulatory process (e.g., securities offering) or funding process**: N/A

**Other considerations:**: N/A

Governance Committee will also consider other qualitative aspects of the project and token, which may influence the assessment. Those will be defined on a case-by-case basis and may include criteria such as asset's general integration into DeFi protocols, project's complexity, value proposition of the protocol, counterparty risk, etc.

### Future Criteria
The CODEC are a living organism intended to be improved and tailored to the preferences of Jet community. At the same time, the assessment criteria directly reflect the characteristics of Jet product and capabilities of Jet protocol. For this reason, Jet community should steer the v2 of CODEC and indicate where Jet should open up more, where it should be more conservative and where it should develop mechanisms to improve the protocol itself. Some of our ideas are:
Introducing caps to open the possibility for young assets to apply
Opening up the possibility to liquidate directly to AMMs
Include liquidation against other currency pairs (e.g. SOL)